DENVER — Four Colorado utility companies are evaluating whether to join an energy imbalance market. The companies, Xcel Energy, Black Hills Energy, Colorado Springs Utilities and Platte River Power Authority, are studying whether their individual energy capacities can be joined in a way to drive lower energy costs for customers.

An energy imbalance market is a real-time market in which energy generation from multiple power providers is dispatched at the lowest possible cost to serve the combined customer demand of the region.

According to information provided by Xcel, the partners have secured an independent consultant, who is evaluating the benefits and costs associated with utilities’ participation in one of two markets: the Western Energy Imbalance Service proposed earlier this year by the Southwest Power Pool, or the existing Western Energy Imbalance Market, operated by the California Independent System Operator. 

The study will help the four utilities evaluate which option would provide the most benefit to customers. 

“Working together, we have the potential to drive down fuel costs and provide customers with more energy from wind and solar resources,” said Alice Jackson, president of Xcel Energy Colorado. “We’re pleased to continue this regional collaboration and urge other power providers to consider joining us to benefit both customers and the environment.” 

“Platte River is committed to providing value to our owner communities,” said Jason Frisbie, chairman and CEO of Platte River Power Authority. “This is a key component needed to help meet our long-term goal for a noncarbon energy future.”

The results of the study, which is being conducted by the Brattle Group, is expected by the end of September with a decision expected by the end of the year.