In a recent meeting, the leadership of Utah Associated Municipal Power Systems (UAMPS) provided an in-depth overview of the current state and future direction of the wholesale electricity market, emphasizing the organization's commitment to adapting to significant changes in energy generation and resource management.

CEO and General Manager, who has been with UAMPS for 13 years, highlighted the organization's evolution from its founding in 1980 to its current status, which includes 50 members across seven western states. UAMPS operates independently, allowing members to choose their resource projects, a model that promotes member autonomy and flexibility in energy sourcing.

The discussion focused on the ongoing transition from traditional energy sources, such as coal, to more sustainable options, including natural gas and renewables. Notably, coal now accounts for only 15% of the energy mix, a significant decrease from previous years, while natural gas has surged due to advancements in fracking technology. The CEO noted that 25% of energy supplied to members comes from hydroelectric sources, underscoring the industry's vulnerability to weather conditions, particularly droughts.

The meeting also addressed the challenges faced in 2023, marked by exceptionally high wholesale electricity prices that impacted member costs. UAMPS is actively working to mitigate exposure to market volatility and is exploring a dual membership track that includes both project-based and all-requirements options, responding to member interest in more comprehensive energy solutions.

Looking ahead, UAMPS is prioritizing the development of new resources, including a proposed 300-megawatt natural gas plant and additional solar and wind projects. The organization is also investigating battery storage solutions to enhance the reliability of renewable energy sources. The CEO emphasized the importance of resource diversification to avoid over-reliance on any single energy source, which could lead to increased costs during market fluctuations.

The meeting concluded with a commitment to ongoing engagement with members and a focus on strategic initiatives aimed at navigating the complexities of the energy transition. UAMPS plans to release financial health scorecards for its members this summer, providing benchmarks for performance and stability in the evolving energy landscape.