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News
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LCG, March 205, 2025--The Southwest Power Pool (SPP) today announced it will soon be the first regional transmission organization (RTO) in the nation to provide full services in both the Eastern and Western Interconnections of the U.S. power grid. On March 20, the Federal Energy Regulatory Commission (FERC) unanimously approved Southwest Power Pool’s amended tariff that includes provisions that enable Western members to join the RTO. The expansion of the SPP RTO is scheduled to go live April 1, 2026.
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LCG, March 20, 2025 – LCG Consulting (LCG) has released a second edition of its annual outlook of the ERCOT wholesale electricity market for 2025, highlighting the region's rapid transition toward increased reliance on renewable energy resources and battery storage.
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Industry News
SPP Receives FERC Approval to be First RTO Operating in Both Eastern and Western Interconnections
LCG, March 20, 2025--The Southwest Power Pool (SPP) today announced it will soon be the first regional transmission organization (RTO) in the nation to provide full services in both the Eastern and Western Interconnections of the U.S. power grid. On March 20, the Federal Energy Regulatory Commission (FERC) unanimously approved Southwest Power Pool’s amended tariff that includes provisions that enable Western members to join the RTO. The expansion of the SPP RTO is scheduled to go live April 1, 2026.
SPP's president and CEO stated, “I am pleased to announce FERC’s approval of the amended RTO tariff. Expanding the RTO into the Western Interconnection is an exciting step in SPP’s growth, bringing value to new and existing members while enhancing reliability in both interconnections.”
SPP manages the bulk electric grid and wholesale power market across 14 western and Midwest states. The Commission’s approval will extend SPP's scope to encompass all or parts of 17 states. Seven Western entities, all of whom currently participate in SPP’s Western Energy Imbalance Service (WEIS) market, can begin participating in SPP’s Integrated Marketplace, transmission planning, reliability coordination and other RTO services beginning in April 2026.
The expansion of the RTO is part of Aspire 2026, SPP’s five-year strategic plan, which is designed to fully integrate Western facilities into SPP’s existing market system.
SPP filed its amended tariff with FERC on June 4, 2024 to accommodate requirements for Western entities pursuing RTO membership or increased participation as part of the expansion of the SPP RTO. The potential new members are: Basin Electric Power Cooperative; Colorado Springs Utilities; Deseret Power Electric Cooperative; the Municipal Energy Agency of Nebraska (MEAN); Platte River Power Authority; Tri-State Generation and Transmission Association; and the Western Area Power Administration Colorado River Storage Project, Rocky Mountain and Upper Great Plains regions.
The CEO of Tri-State Generation and Transmission Association said, “The Western expansion of the SPP RTO bolsters reliability and resiliency for our members as we grow and diversify our resource portfolio while reducing emissions. We greatly value the full benefits of the SPP RTO, including day-ahead and ancillary services markets, efficient regional transmission planning, a common transmission tariff and participatory governance model that help us to further reduce costs for our members across the West. Prior to SPP RTO West entry, we will be making a filing with our state regulators highlighting these market benefits.”
“With the complexities of today’s energy industry and the regulations that define it, an adaptable electric grid with access to both local and regional resources is essential for managing customer costs and maintaining service reliability,” said the CEO of Colorado Springs Utilities. “We strongly believe the SPP RTO will help us achieve this goal, while also connecting us with vital transmission resources as we pursue new and cleaner forms of electric generation. So, FERC’s approval of the amended tariff is very encouraging for us and our customers as we implement our Sustainable Energy Plan.”
SPP is working with additional Western utilities who have expressed interest in joining the RTO once this initial expansion is complete.
FERC originally approved SPP as an RTO in October 2004. Since then, SPP expanded its RTO footprint in the Eastern Interconnection from eight to 14 states. This latest expansion results in a footprint of all or part of 17 states.
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UPLAN-NPM
The Locational Marginal Price Model (LMP) Network Power Model
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UPLAN-ACE
Day Ahead and Real Time Market Simulation
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UPLAN-G
The Gas Procurement and Competitive Analysis System
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PLATO
Database of Plants, Loads, Assets, Transmission...
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