Southwest Power Pool wants to become the first regional transmission organization (RTO) to provide full services in both the Eastern and Western Interconnections beginning in 2026, according to a recent filing with the Federal Energy Regulatory Commission (FERC).
SPP filed an amendment to its tariff with FERC on June 4 to include provisions specific to its western members. Barbara Sugg, SPP’s president and CEO, said the proposal “improves the reliability of the electric grid and provides economic benefits for entities in both the Eastern and Western Interconnections.”
The entities pursuing RTO membership or expanded participation as part of the expansion of the SPP RTO are Basin Electric Power Cooperative; Colorado Springs Utilities; Deseret Power Electric Cooperative; the Municipal Energy Agency of Nebraska; Platte River Power Authority; Tri-State Generation and Transmission Association; and the Western Area Power Administration Colorado River Storage Project, Rocky Mountain region and Upper Great Plains region. These are the first western entities to participate in SPP’s Integrated Marketplace in the Western Interconnection.
“The RTO offers unprecedented access to regional transmission and generation resources that will help us reach our emission reduction goals, add more renewable energy, manage customer costs and ensure the reliability of our electric grid,” said Travas Deal, Colorado Springs Utilities chief executive officer.
SPP said it will enable transmission owners to participate in its energy markets by using an optimized solution across the direct current (DC) ties that connect the Eastern and Western Interconnections. Optimization of the DC ties’ use will increase resilience by leveraging diverse resources via the 510 MW of bi-directional DC tie capability, they said. An estimate of more than $200 million in annual benefits is expected for the joining western entities.
The Western utilities now pursuing RTO membership are currently participating in the SPP Western Energy Imbalance Service (WEIS) market. The WEIS, which facilitates real-time energy dispatch, provided an estimated $31.7 million in net benefits for participants in 2022 and reduced wholesale energy costs by $1.35/MWh. The noted enhancements to reliability and increased value for participants was a driver for making the move to full RTO membership.
This would be the first major expansion of SPP’s RTO service territory since October 2015 when it grew from 9 to 14 states by incorporating the Integrated System into its full suite of market and transmission services.
SPP is in a bit of a turf war with the California Independent System Operator, which also wants to expand its footprint.
NV Energy, Idaho Power, Portland General Electric, PacifiCorp, Balancing Authority of Northern California, and LADWP have all expressed interest in joining CAISO’s extended day-ahead market. That footprint was a main draw for NV Energy, which valued the regional interconnectivity and access to diverse resources, CAISO said in a press release.
