The Southwest Power Pool has a unique solution to soaring energy demand: Expand westward.
The grid operator — which covers parts of 14 central U.S. states — has a margin of excess generation that is “dwindling to the point where it’s becoming dangerous,” SPP president and CEO Lanny Nickell warned at a recent conference. And that’s even before a surge of AI data centers, new manufacturing facilities and extreme weather events drive up demand.
But Nickell, who took the helm of SPP over from Barbara Sugg on April 1, is ready to oversee the grid operator’s expansion through the Southwest and the Pacific Northwest. Federal regulators have approved the operator’s bid to connect parts of the Eastern and Western grid — a proposal known as RTO West — in 2026. A year later, SPP plans to launch a day-ahead market for Western utilities through its Markets+ initiative.
“It’s a big benefit to SPP and a big benefit to the west,” Nickell said in an interview. “They get to be part of a regional structure that allows for the more economic exchange of energy. … The benefit to the east is our ability to leverage a more diverse portfolio of resources.”
