Energy markets are formal structures through which electric utilities can buy and sell energy. In a “day-ahead” market structure, participants buy and sell electricity at a set price for the following day. In general, markets with more participants and a wider footprint create greater benefits and efficiencies, which are shared among the participants. In the West, two day-ahead energy markets are currently competing to attract utilities to join their footprint. The Bonneville Power Administration (BPA), which sells power from federal dams on the Columbia and Snake Rivers, is headed toward the wrong market.
Markets+, developed by the Arkansas-based Southwest Power Pool, is BPA’s market of choice. The recently-approved construct is relatively small and split among three distinct zones of expected participants in the Northwest, Arizona, and Colorado.
The Extended Day-Ahead Market (EDAM) is the competing market. Larger and more well-developed, EDAM is built on the successful Western Energy Imbalance Market. Several major utility players have already signaled their intent to join EDAM, including PacifiCorp, Portland General Electric, Idaho Power and NV Energy. EDAM’s structure has been largely approved by federal regulators and is expected to go live in 2026.
The Problem
In March 2025, BPA published a draft decision to join Markets+ and said it would finalize its decision in May. If the agency doesn’t change course, it will make the pathway to regional decarbonization much harder and leave significant savings for its customers on the table. Joining EDAM is a better path. The broad base of clean resources available through EDAM could allow BPA to generate less power from the federal hydrosystem and reduce harm to endangered migrating salmon and steelhead. EDAM is also more likely to encourage development of new carbon-free resources and transmission which could then be spread out among a larger region, creating savings for customers. 
Here are some facts:
- A study commissioned by BPA itself in 2024 showed that joining Markets+ would result in $69M to $221M higher production costs per year than joining EDAM.
- A similar study commissioned by the Northwest Energy Coalition and others found that by joining Markets+, BPA’s costs will be about $148M higher than joining EDAM and $83M higher than maintaining current operations and joining no market.
- The two markets have drastically different setup costs: BPA would spend an estimated $3M to help create EDAM, but up to $40M to implement Markets+.
- EDAM’s footprint is already larger than that of Markets+, with more diverse resources and fewer gaps or “seams” between market participants. This allows for more efficient sharing of resources within the market and more value for renewable resources.
All of these higher production costs incurred by BPA through this decision will be borne by ratepayers in the Northwest. As BPA’s costs grow, so do its rates. Seattle City Light estimated that, based on its share of the BPA system, the decision to join Markets+ would increase power costs for Seattle residents by up to $21 million per year.
Here’s some other factors BPA should consider:
- There’s no reason to decide on joining any market right now. Both markets are still shaping into form and BPA has already said it won’t join any market until 2028.
- EDAM is only getting better. Heeding concerns from across the region, the California state legislature is expected to adopt changes to how EDAM is governed so all market participants are involved. BPA isn’t willing to factor these changes into its decision.
- Markets+ shuts the door to public participation. Unlike EDAM, Markets+ doesn’t allow the public or stakeholder groups like ICL to weigh in. EDAM has a robust public participation process so utilities aren’t the only voices.
- BPA joining Markets+ will split the region and dilute the benefits. Western utilities and BPA should unify into a single market, not a bifurcated system. A single Westwide power market will allow broader use and development of lower cost, carbon-free power sources that will aid in decarbonizing the energy system and lowering electricity costs for consumers.
The Solution
To maximize the efficiency of the system and bring maximum benefits for salmon, steelhead, and decarbonization, BPA should halt this reckless course and either join the Extended Day-Ahead Market or pause their decision. BPA should take time to fully evaluate the benefits and development of each market. We’re also asking the Northwest Congressional delegation and governors to scrutinize BPA’s decision and push them to shift course.
BPA’s draft decision to join Markets+ over the Extended Day Ahead Market will cost ratepayers money at a time when energy prices are rising fast. It will slow decarbonization when fighting climate change has never been more important. It will endanger reliability when the grid is more vulnerable than it’s ever been before. This decision doesn’t make much sense, but especially not now.
You can help. Take action today and tell Bonneville to delay their markets decision. Send an email to your elected leaders asking them to do the same.