Southwest Power Pool (SPP), the grid operator for the central United States, announced on Wednesday that it has submitted an application seeking approval to include the western region in its tariff to provide full Regional Transmission Organization (RTO) services across the East and West grids.
Located in Arkansas, SPP submitted a tariff amendment to the Federal Energy Regulatory Commission (FERC) on June 4, including provisions for western members. If approved, SPP would become the first organization in the United States to offer RTO services on both the East and West interconnections.
The operator stated that this expansion is expected to bring over $200 million in annual benefits to the new western members in Arizona, Colorado, Utah, and Wyoming, while current members will see annual benefits of $2.8 billion.
RTOs manage large-scale electricity transmission, and expanding services can enhance reliability, efficiency, and resilience, providing significant cost savings and benefits to participants.
Colorado Springs Utilities CEO Travas Deal stated in a statement: "RTO offers unprecedented access to regional transmission and generation resources, which will help us achieve emission reduction goals, increase renewable energy, manage customer costs, and ensure grid reliability."
SPP noted that since October 20, 2020, it has been engaging with parties interested in evaluating the benefits and requirements of RTO membership. The expansion plan of the SPP RTO is set to go live on April 1, 2026.
