United Power President and CEO Mark A. Gabriel testified before the House Energy and Environment Committee in favor of Senate Bill 21-072 requiring all utilities to join organized wholesale markets.

“The West is on the precipice of great change in electric generation and transmission,” Gabriel said, “And the movement to cleaner sources of generation will require a full market.” He told the committee that while the move to energy imbalance services such as those provided by the Southwest Power Pool (SPP) in its Western Energy Imbalance Service (WEIS) and California Independent System Operator’s Energy Imbalance Service (EIM) is a good start, neither provides the benefit of a true regional transmission organization with day-ahead markets.

“Markets provide two functions, acting as the air traffic controller and facilitating financial transactions,” Gabriel explained. “They function best when crossing time and weather zones.”

Named to lead United Power in March, Gabriel was the Administrator and Chief Executive Officer of the Western Area Power Administration. He moved WAPA into the full market in SPP for states in the Upper Great Plains in 2015 that resulted in a $145 million savings for its utility customers. In February, WAPA moved its Rocky Mountain Region and Colorado River Storage Project Regions into the SPP WEIS imbalance Service and in March the Sierra Nevada Region into the CALISO EIM.

“Flexibility in generation supply is best supported by fully operational markets,” he said. In addition, Gabriel pointed out that the Bill’s timeframe of 2030 may be overtaken by events.

The United Power Board of Directors voted to support SB21-072 when it was introduced earlier this year by primary sponsor Senator Chris Hansen. SB-72 is a lengthy, complex bill which creates statutory language to require investor-owned utilities to join a Regional Transmission Organization (RTO) by 2030, expedites electric transmission line approval processes at the Colorado Public Utilities Commission (PUC) and creates the Colorado Electric Transmission Authority (CETA) to assist in financing construction or purchase of transmission projects.  

After passing through two committee hearings and floor votes in the Senate, SB 21-072 passed in the House Energy and Environment Committee on a 11-2 vote. Audio of Mark A. Gabriel’s testimony can be found here. Mr. Gabriel speaks at 4:57 pm.