Founded as an 11-member tight power pool in 1941, Southwest Power Pool (SPP) achieved RTO status in 2004, ensuring reliable power supplies, adequate transmission infrastructure, and competitive wholesale electricity prices for its members. Based in Little Rock, Ark., SPP manages transmission in portions of fourteen states: Arkansas, Iowa, Kansas, Louisiana, Minnesota, Missouri, Montana, Nebraska, New Mexico, North Dakota, Oklahoma, South Dakota, Texas and Wyoming. Its membership is comprised of investor-owned utilities, municipal systems, generation and transmission cooperatives, state authorities, independent power producers, power marketers and independent transmission companies.
In 2007, SPP began operating its real-time Energy Imbalance Service (EIS) market. In the same year, SPP became a FERC-approved Regional Entity. The SPP Regional Entity serves as the reliability coordinator for the NERC region, overseeing compliance with reliability standards.
In March 2014, SPP implemented its Integrated Marketplace that includes a day-ahead energy market, a real-time energy market, and an operating reserve market. SPP’s Integrated Marketplace also includes a market for Transmission Congestion Rights. The SPP Integrated Marketplace co-optimizes the deployment of energy and operating reserves to dispatch resources on a least-cost basis.
In 2015, SPP expanded its footprint incorporating the Western Area Power Administration – Upper Great Plains (WAPA-UGP) region, the Basin Electric Power Cooperative, and the Heartlands Consumer Power District. The expansion nearly doubled SPP’s service territory by square miles, adding more the 5,000 MW of peak demand and over 7,000 MW of generating capacity. WAPA-UGP is the first federal power marketing administration to join an RTO.
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