KEY POINTS
- Federal regulators approved the SPP grid expansion to 17 states.
- SPP will manage electricity across both U.S. interconnections.
- The expansion improves service reliability and grid adaptability.
Federal energy regulators have given the green light for an expansion of the Southwest Power Pool, enabling it to become the first regional grid operator in the United States to oversee segments of both the western and eastern interconnections of the nation’s electric system.
SPP becomes first grid to span both U.S. interconnections
On Thursday, the Federal Energy Regulatory Commission unanimously approved the plan, as stated by the Southwest Power Pool (SPP).
SPP is among seven regional transmission organizations (RTOs) that manage the flow of electricity and oversee wholesale power markets across various states. RTOs occasionally vie for territory and membership as they broaden their grid services and infrastructure.
According to the agreement, SPP will broaden its existing reach from 14 states to include all or parts of 17 states. According to the statement, seven power providers currently operating at the edges of SPP’s market will gain broader access to transmission planning, grid services, and market participation beginning in April 2026.
SPP grid expansion to improve reliability and lower costs
According to Reuters, the anticipated participants comprise 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, along with three regions of the Western Area Power Administration: the Colorado River Storage Project, Rocky Mountain, and Upper Great Plains.
“Given the intricacies of the current energy sector and the regulations that shape it, a flexible electric grid that connects to both local and regional resources is crucial for controlling customer expenses and ensuring service reliability,” stated Travas Deal, chief executive officer of Colorado Springs Utilities. “We are confident that the SPP RTO will assist us in reaching this objective.”
The expansion of SPP is scheduled to commence in April 2026.
