Grid operator sends Western market plan to FERC

By Jason Plautz | 04/02/2024 06:49 AM EDT

The fate of the Southwest Power Pool’s proposal will have major implications for renewable energy projects.

A coordination center for the Arkansas-based Southwest Power Pool.

A coordination center for the Arkansas-based Southwest Power Pool. Southwest Power Pool

A long-running push to organize Western utilities under a single market took another step forward last week as an Arkansas-based grid operator filed a proposal with the Federal Energy Regulatory Commission.

The Southwest Power Pool (SPP) said its plan to expand westward under its Markets+ program would help lower costs for the region and provide more reliability as utilities grapple with extreme weather. The expanded market could also help increase the flow of renewable energy through the West and lower grid costs for participants.

But the outlook for the plan remains uncertain, in part because of a competing proposal that includes California’s main grid operator.

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SPP’s plan would create a day-ahead market for utilities to trade resources in advance. It stops short of creating a full regional transmission organization to oversee the power system.

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