- The desert southwest has moderate winter and prolonged hot summers
- Mush of the year, the area has a surplus of generation capacity and is a major exporter of power to South California.
- Natural gas is the most common marginal fuel due to the abundant natural gas reserves, but coal and hydropower are relatively common too.
- The area also receives a great deal of sunlight, making it an attractive location for solar power.
- There are three major hubs for electricity trading in the area, and major power generation facilities are located near each hub.
- Mead: is located on the outskirts of Las Vegas. Lake Mead is the artificial lake formed when the Hoover Dam was built on the Colorado River. The Hoover Dam is a major source of hydroelectric power and the primary delivery point for power in southern Nevada.
- Palo Verde: is located at a major nuclear power plant and switching yard about 45 miles west of Phoenix, Arizona. Many high power lines to California are located at this switching yard.
- Four Corners: is located in northwestern New Mexico at the interconnection of several major transmission lines.
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