[{"_1":2,"_99":-5,"_100":-5},"loaderData",{"_3":4,"_26":27},"root",{"_5":6,"_17":10,"_18":19,"_20":21,"_22":10,"_23":-5,"_24":-5,"_25":10},"user",{"_7":8,"_9":10,"_11":10,"_12":-5,"_13":-5,"_14":15,"_16":-5},"roles",[],"isAuthenticated",false,"isPremium","planName","subscriptionStatus","featureFlags",{},"insightsBudget","isDevelopmentHost","userPreferences",{},"recaptchaSiteKey","6LcvOJcUAAAAAHsB-gPGfGktcRlKpH7OTIU_dMTD","isImpersonating","impersonation","affiliateStatus","isFreedomPortal","routes/v2/article/layout",{"_28":29,"_30":31},"notFound",true,"relatedArticles",[32,75,87],{"_33":34,"_35":36,"_37":38,"_39":40,"_41":42,"_43":44,"_45":46,"_47":48,"_49":50,"_51":52,"_53":54,"_55":56,"_57":58,"_59":60,"_61":62,"_63":64,"_65":66,"_67":68,"_69":70,"_71":72,"_73":56,"_74":56},"mediaId",6224411,"mediaKeyId","3550626-d856eb2315e0720129d60fe27a3e04b9","parentId",3550626,"title","Public Service projects tens of millions in Markets Plus costs; company asks to recover implementation through ECA","audioSeconds",771,"startMs",15739000,"endMs",16510000,"viewUrl","/Search/View?dp=1&key=3550626-d856eb2315e0720129d60fe27a3e04b9&start=15739&end=16510","thumbnailUrl","https://assets.pipeline.soar.com/3550626-d856eb2315e0720129d60fe27a3e04b9/thumbnail_15739000.jpg","articleUrl","/articles/6224411/Colorado/Public-Service-projects-tens-of-millions-in-Markets-Plus-costs-company-asks-to-recover-implementation-through-ECA","mediaUrl","https://secure.pipeline.soar.com/6224411-f2b67cf6e87aeca449623ebed5ef80f7/orig.mp4?Expires=1770995519&Signature=TrioCnLZC3jj35hOpYTMlBX3IdatAa-WF4gk3Op7MY-ynMRj5UkQ7vZkupCTY0RA-FYorDENg608kRbyQTkz5d-H3WKwf2DMt6UFJiMBdw6RshWjolZ7oKxzrdou-kEXFWNxOYlezTHRKo2Kkc4Iy53SZm7GXrVSRA32Fq~sUjBtoM9N92jCU7kRoZz4W-f2YS0KzC17QX3lwJcKHPfxT7-X8940~2O5-zq3Mg~6Ww~OOAxD0YBicuKxU7gFTu5RErjt-mLY~9O6C2-kQGa7wrUKCcoF8pG7-xofiFjLA--8kumBmYqXJBv8zse2bhHX8z2r3ls4JK1ilj48c6o81w__&Key-Pair-Id=KUT5TJCACFTXG","author","","date","2025-05-28T16:46:14.027Z","article","Joseph C. Taylor and pricing witness William Bacher testified on the record about the anticipated costs of Public Service Company of Colorado's proposed entry into SPP's Markets Plus and the company's proposal to recover those costs through the Electric Commodity Adjustment (ECA).

Why it matters: The company told the commission that Markets Plus implementation and administration create upfront and ongoing costs. Company witnesses presented a 15-year retail revenue-impact model (marked in the record as attachment MRG-4) that shows small per-kilowatt-hour rate increases in the early years followed by net cumulative retail benefits many years later. Public Service asked the commission to allow cost recovery through the ECA rather than waiting for base-rate proceedings.

Key figures and testimony

- Phase 2 implementation estimate: witnesses described a phase-2 SPP implementation program with budgeted costs around $150,000,000; the company's share was described in testimony as roughly $18'$20 million in collateral (Joseph C. Taylor).

- Administrative budget: Taylor testified that Markets Plus's ongoing administrative budget is about $10,000,000 per year; company modeling folded that into the company's annual revenue requirement.

- Financing/loan costs: the company modeled financing of phase-2 implementation costs and estimated an additional financing-related allocation in early market years of roughly $4,000,000 per year for the initial payoff period.

- IT and integration: witnesses cited internal and vendor software/integration costs in the $13'$15 million range to prepare company systems to participate in Markets Plus (William Bacher and Taylor).

- Company model (MRG-4): William Bacher explained that the company's 15-year illustrative model shows modest retail rate increases in the first five or six years (examples in the record are on the order of $0.0001 per kWh year-on-year in early years) and a nominal cumulative retail revenue increase of about $29.49 million through 2031 before cumulative net benefits reverse later in the modeling horizon. Bacher testified the company's 15-year nominal net benefit in that exhibit is about $17.8 million (not discounted).

What the commission and intervenors asked

Intervenors cross-examined the company on sensitivity: how results change if fewer parties join Markets Plus, whether other modeled benefits (capacity savings, coordinated transmission value) were included in the company's analysis, and whether the company's base forecasts (retail sales used in the model) were conservative or optimistic. Several intervenors raised the point that the company models production cost benefits using the WEMG/E3 production-cost study and then adjusts those benefits downward to reflect more-limited export capability; the company described the stepwise adjustments to the E3 results (see separate article on export limits and certification of assumptions).

Company position on cost recovery

Public Service asked the commission to permit recovery of Markets Plus implementation and operating costs through the ECA (a standard energy/commodity adjustment mechanism that the commission has used historically to recover fuel and related wholesale market expenses). Company witnesses argued ECA recovery aligns the timing of costs and benefits and that the commission often uses targeted adjustment mechanisms to recover specific categories of program costs (for example, a list of other Colorado rider mechanisms was discussed during testimony).

Ending: Commissioners requested follow-up documents and asked the company to identify the specific forecast source used for the retail sales assumptions in the MRG-4 exhibit; parties will submit further briefs and exhibits, and the commission will decide whether the company may join Markets Plus and how any costs should be recovered.","mediaType","Video","parentTitle","25A-0075E Public Service Company - Southwest Power Pool Markets - 05.27.25 - HRA Day 1","oneSentenceSummary","Joseph C. Taylor and pricing witness William Bacher testified on the record about the anticipated costs of Public Service Company of Colorado's proposed entry into SPP's Markets Plus and the company's proposal to recover those costs through the Electric Commodity Adjustment (ECA).","taxTitle","Public Utilities Commission, Governor's Boards and Commissions, Organizations, Executive, Colorado","taxId",28165,"location","Colorado","headline","shortSummary",{"_33":76,"_35":36,"_37":38,"_39":77,"_41":78,"_43":79,"_45":80,"_47":81,"_49":82,"_51":83,"_53":84,"_55":56,"_57":58,"_59":85,"_61":62,"_63":64,"_65":86,"_67":68,"_69":70,"_71":72,"_73":56,"_74":56},6224414,"Public Service seeks approval to join SPP Markets Plus; CPUC holds evidentiary hearing",13156,1774000,14930000,"/Search/View?dp=1&key=3550626-d856eb2315e0720129d60fe27a3e04b9&start=1774&end=14930","https://assets.pipeline.soar.com/3550626-d856eb2315e0720129d60fe27a3e04b9/thumbnail_1774000.jpg","/articles/6224414/Colorado/Public-Service-seeks-approval-to-join-SPP-Markets-Plus-CPUC-holds-evidentiary-hearing","https://secure.pipeline.soar.com/6224414-c279482ca852771b359c2e7329b22cdd/orig.mp4?Expires=1770995519&Signature=bOOjGiLKeIvD52LeMSniAwRJLgEQVxOEM7y3~oaEsdh~B3vxsjqcP-ueQ5dl7mKSgyufVQQ4FvjVYfACQM5eWWf0Uu83PCFK-cRpmFTB~rStGwr5KCL-un7RhSuc5KCpNVAfrFQI-THtsBxEzIz4PX7R3S2s8NhxUUrYIywBCFV6j3wmPcdRL0Q7hIxk0XBY~MoglUaBVfR1QQkPkaYKpLIQGLdPewW98xWtKBxDCsRWrQmJDEHXz84cofiGw4wEjEal5GXMdoGCkgR7LJ7mNZ9XVffT~x9-4xmOs1m9G6-4lHftPBxIjc9y5VffkjfuGs4dhA8jgfROxPXaCjdL~A__&Key-Pair-Id=KUT5TJCACFTXG","Good morning. We're now on the record. It's 9 a.m. on Tuesday, 05/27/2025, this is an evidentiary hearing in proceeding number 25-0075E, Public Service Company of Colorado's application requesting that it be found in the public interest to participate in SPP's regional day-ahead market called Markets Plus and to recover associated costs through the Electric Commodity Adjustment, Commission Chair Eric Blank said at the start of the hearing.

Public Service presented Joseph C. Taylor, senior director for Western Markets, as its lead witness. Taylor adopted his pre-filed direct and rebuttal testimony on the record and answered cross examination from intervenors including Advanced Energy United, Western Resource Advocates, Black Hills, Tri-State and counsel for the Colorado Energy Office. Steven H. Denman appeared as counsel for Public Service.

The hearing record includes a spreadsheet of pre-filed exhibits marked as hearing exhibit 1,400 and multiple witness exhibits (for example, Taylor's hearing exhibits 101 and 103 were admitted). Commissioners and parties focused on three overarching questions: whether Markets Plus is in the public interest for Colorado ratepayers; whether costs to join and operate Markets Plus should be recoverable through the ECA; and how Markets Plus participation interacts with regional resource adequacy and seams with other proposed markets.

Taylor told the commission that Markets Plus is “the next step” in Public Service's participation in organized wholesale markets and that the company views participation as part of a multi-stage path from the company's current participation in Western Energy Imbalance Service (WEIS). He also confirmed the Markets Plus expected go-live date has been pushed from April 2027 to October 2027.

No final commission decision was issued at the hearing. Commissioners emphasized time limits for the evidentiary schedule and asked parties to use hearing time efficiently; the proceeding will continue with additional witnesses and briefing on evidence already placed in the record.

The hearing record also established procedural facts: witnesses were sworn and cross examination schedules adjusted, and the commission admitted pre-filed testimony and attachments into evidence. Parties asked the commission to be explicit about whether the commission's approval of Markets Plus participation would be revocable later if future conditions changed; Public Service asked that cost recovery for implemented actions be handled prospectively and not clawed back retroactively.

Looking ahead, commissioners asked the company to provide follow-up items on certain factual points, including confirmation of forecasts used in the company's cost/rate impact exhibit and clarification of phase-2 funding agreement provisions, and scheduled additional testimony and procedural steps.

Ending: The hearing record will remain open for additional testimony and exhibits; the commission will weigh the written record, exhibits and testimony before issuing any decision on Public Service's application.","Public Service Company of Colorado asked the Colorado Public Utilities Commission to allow it to join SPP\u0000\bMarkets Plus and to recover related costs through the company's Electric Commodity Adjustment. Commissioners heard testimony, cross-examination and admitted pre-filed exhibits during a multi-day evidentiary hearing on May 27, 2025.",{"_33":88,"_35":36,"_37":38,"_39":89,"_41":90,"_43":91,"_45":92,"_47":93,"_49":94,"_51":95,"_53":96,"_55":56,"_57":58,"_59":97,"_61":62,"_63":64,"_65":98,"_67":68,"_69":70,"_71":72,"_73":56,"_74":56},6224406,"Commission hears concerns about WRAP, seams and transmission as Markets Plus application advances",1636,3223000,4859000,"/Search/View?dp=1&key=3550626-d856eb2315e0720129d60fe27a3e04b9&start=3223&end=4859","https://assets.pipeline.soar.com/3550626-d856eb2315e0720129d60fe27a3e04b9/thumbnail_3223000.jpg","/articles/6224406/Colorado/Commission-hears-concerns-about-WRAP-seams-and-transmission-as-Markets-Plus-application-advances","https://secure.pipeline.soar.com/6224406-8402edebb04ba1d0351e3ae473591683/orig.mp4?Expires=1770995519&Signature=HquE9WPp93LiTelfUhX-HJPVRnlPfUqUFXOxzIaGsfMMo510zUXZExCu0VeB9CNWKve-A7Xp7O8ajSrsyaD6KButgyoVk-e8885smzITbbAgx5Yrio6PM3ZZZB6ZMIoqpGZ8DfGWd6AOti2E7tkBy~~-QN58AUjbHTEC7MVs35alWF8nyYNna4G4KuWXSlmQOg580Hfs75F-4oLNEPh-lCzyPRVRSBtzqTrdtNbGNxDtfAX9puxFiNesuEoVif-3O049K590BJUs8WaZpA3lz-6~emCHa7by8Yg2o15bvfVd4zvXTXMnkz4tYkJVi4CphpDqOXSwEzFE6TWP5aLXIQ__&Key-Pair-Id=KUT5TJCACFTXG","Public Service Company of Colorado's witnesses told the Colorado Public Utilities Commission that participation in SPP Markets Plus will require the company to participate in the Western Resource Adequacy Program (WRAP) and that participation raises planning, operational and transmission questions the company has not fully quantified.

Why it matters: WRAP participation affects how the company shows forward resource adequacy, how capacity gets accredited (ELCC, PRM methods), and whether additional transmission will be needed to satisfy forward showings. Parties asked whether Markets Plus will help or complicate coordination with other proposed market constructs (for example, SPP RTO expansion and EDAM). The commission's rule language (discussed in testimony as rule 37-53(a) and related sections) requires parties to show plans to optimize dispatch and unit commitment where multiple regional markets would operate.

What witnesses said

- WRAP onboarding: Taylor said Markets Plus participants must join the Western Resource Adequacy Program and that Public Service does not currently participate in wrap. He stated the company would be a member by the Markets Plus go-live date and described limited recent company engagement with WRAP design work (company participated earlier but not currently a WRAP committee member).

- Accreditation and PRM: Taylor told commissioners that WRAP uses ELCC, LOLE and planning reserve margin calculations and that those methods differ from the company's current resource plan assumptions; he said WRAP's recent PRMs appear lower than Public Service's planning reserve margins and that the company has not fully analyzed what those differences imply for the ERP forward showing requirements.

- Transmission and seams: Taylor and other witnesses described a set of operational tools intended to reduce 'seams' friction between Markets Plus and adjacent constructs: real-time dispatchable transactions (RTDT), Area Control Error diversity interchange (ADI), and a Markets Plus seams roadmap (executive summary approved by the Market Plus executive committee). The company said RTDT is due to be implemented by April 2026, and that RTDT and ADI would be usable regardless of Markets Plus participation, but the witnesses said full market-to-market optimization (day-ahead unit-commit coordination) is an open design workstream and could take years.

- Export capability and modeling adjustments: Intervenors challenged the company's production-cost study assumptions about export capability. The company testified that WEMG/E3 results originally overstated exports; the company used a stepwise correction (an APP-4 scenario with a 900 MW cap, then a further technical transfer-capability assessment that yielded a 478-MW figure) and then applied that scaling to production-cost and greenhouse-gas estimates. Witnesses acknowledged the transfer-capacity estimates depend on internal rights and Tri-State/other parties' arrangements and that export capability to non-Markets Plus areas is constrained (company used a 30-MW proxy for average exports outside its balancing area in some parts of the record).

What the commission and intervenors asked

Intervenors asked for clearer, updated WRAP-onboarding schedules, asked whether the company has updated PRM and ELCC studies to include company data, pushed for transmission planning details (projects, timelines, costs), and requested more granular export/import capability modeling. Witnesses agreed those are open items.

Ending: Parties and the commission agreed these operational and transmission issues need continued attention. The company was asked to provide follow-up materials and to coordinate with Markets Plus stakeholders and the WRAP implementation process; commission policy questions about how to ensure seams optimization and resource-accreditation compliance will be a part of the further record.","Witnesses and intervenors argued that Markets Plus participation would require joining the Western Resource Adequacy Program (WRAP), could change load accreditation and transmission needs, and raises unresolved seams issues with neighboring market constructs; witnesses described export limits and the need for further study and planning.","actionData","errors"]

Article not found

Public Service projects tens of millions in Markets Plus costs; company asks to recover implementation through ECA

Public Service seeks approval to join SPP Markets Plus; CPUC holds evidentiary hearing

Commission hears concerns about WRAP, seams and transmission as Markets Plus application advances