Stakeholder Report: September 2024
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Barbara Sugg, President and CEO
For this edition I’d like to share an excerpt from my letter in our new report, Our Generational Challenge: A Reliable Future for Electricity.
“I am concerned now more than ever about the future of our shared electric grid and our ability to provide the reliable and affordable service consumers expect. Our energy system is in the midst of radical change. Demand for electricity is outpacing supply from our generation fleet, and we are facing an increase in extreme weather events that are causing grid emergencies, tight operating conditions, and risks to human health and safety.
While SPP always focuses on affordability, we need continued investment to add the generating and transmission facilities needed to mitigate risks and keep the lights on. SPP — along with our members, regulators, policymakers, regional transmission organizations, and consumers —must form a coalition to meet our critical mission of responsibly and economically keeping the lights on.
As the real-time grid operator and transmission planner for a 14-state region, our job is to ensure electric reliability for millions of consumers. We’ve been successfully doing this work since 1941. But we can’t do it alone. A concerted, collective effort is needed to ensure we have a reliable power grid today and in the future.”
If you would like copies of the report or infographic to use in your company’s outreach efforts, please let me or Emily Pennel know. We hope these communications, found at SPP.org/OurChallenge, will serve as a meaningful tool in telling our story regarding the need to build more infrastructure.
Thank you,
Barbara
On August 26 SPP declared an EEA Level 1 for the entire Balancing Authority from 12:30 p.m. CT until 3:00 p.m. CT. The EEA1 was declared due to high temperatures across much of our 14-state service territory, combined with low region-wide wind output, and generation and transmission outages to produce narrow margins in available generating capacity. SPP has experienced EEA1 events three times prior to August 26, 2024: on August 6, 2019, during Winter Storm Uri in February 2021, and during Winter Storm Elliot in December 2022.
In Q2 of 2024, SPP reached a new renewable (wind + solar + hydro + waste) record of 25,475 MW on June 17, 2024, beating the previous renewable record of 25,024 MW on September 4, 2023. In April, SPP observed a higher level of planned generation outages overall. On April 28 SPP declared a Transmission Emergency in the SPS (Southwestern Public Service Company, where SPP serves as the Reliability Coordinator) area; load was restored within two hours.
The top contributors to real-time generation mix in the Integrated Marketplace in the second quarter of 2024 were wind (42.0%), gas (28.1%), coal (21.0%), nuclear (4.5%) and hydro (3.7%).
Overall average prices between the day-ahead ($19.42/MWh in Q2) and real-time ($18.17/MWh in Q2) markets continue to converge in Q2 2024, which is an indicator of an effective and efficient market. The average real-time price of energy in Q2 2024 was down 22.5% from $23.24 in Q1 2024, and 22.4% lower than 2023’s Q2 average of $23.11.
The Markets and Operations Policy Committee (MOPC) held its quarterly meeting on July 16-17. There were 25 voting items on the agenda, which passed with an average approval rate of 94.88%.
Approved items included RR621 Fuel Assurance Policy as approved by the Supply Adequacy Working Group (SAWG); RR622 Planning Reserve Margin (PRM), a recommendation that includes a 33% winter season base PRM and 16% summer season PRM, as approved with SPP staff edits related to Safe Harbor and sufficiency valuation curve for two years after the implementation date of PRM increase; RR628 Price Formation During Load Shed and Emergency Energy Assistance, which proposes to dispatch the system based on the true obligation, and price the system using the obligation without the impact of the load shed and energy emergency assistance; and RR635 Market Storage Resources Registration and Self-Charging.
The MOPC also approved the use of the current estimated in-service date of the upgrades identified in the Quarterly Project Tracking Report to evaluate future deviations of in-service dates.
They approved the Definitive Interconnection System Impact Study (DISIS) Waiver Proposal, which included:
- A waiver to modify the start of Phase 1 of the 2024 DISIS to begin at the completion of the first planned Phase 2 Restudy of the 2023 DISIS
- A waiver to modify the start of the open season of the subsequent DISIS to begin at the earlier of 1) April 1, 2026, or 2) at the completion of Decision Point 2 of the 2024 DISIS, and close on October 31, 2026
- An interim waiver for provisional service for Interim Generator Interconnection Agreements (IGIAs) to become Generator Interconnection Agreements (GIAs) in the subsequent DISIS.
Other discussion items included FERC Order 1920 and its impact on the Consolidated Planning Process (CPP), lessons learned from the April 28 transmission emergency, and review of the portfolio development process that highlighted challenges in different regions of the SPP footprint within the 2024 Integrated Transmission Plan (ITP).
The MOPC will next meet in-person October 15-16 at the SPP headquarters in Little Rock, Arkansas.
To get involved in SPP's stakeholder-driven process, find meeting registration, contact information and materials at the stakeholder group links below:
MOPC | DSC | ESWG | MWG | ORWG | 2222
PCWG | RARTF | RTWG | SAWG | TOSPTF | TWG
The Midcontinent Independent System Operator (MISO) and SPP are asking federal regulators to approve changes to their tariffs and joint operating agreement needed to advance $1.7 billion in transmission projects that could enable up to 30 GW of new generation along the northern seam of the MISO and SPP footprint. The five transmission projects selected in the Joint Targeted Interconnection Queue (JTIQ) Study will be paid for by generation interconnection customers and supported by potential Department of Energy funding.
Markets+ phase one, SPP’s western energy market, continues with SPP staff and Markets+ participants focused on developing protocol language. At their August 13 meeting, the Markets+ Participant Executive Committee (MPEC) unanimously approvedthe first sections of protocol language to come before the committee.
On July 31, FERC issued a deficiency letter to SPP regarding the initial Markets+ tariff filing, requesting more information related to the Markets+ transmission construct. SPP is working on a response and plans to reply quickly, well within the 60-day period requested by FERC. SPP had accounted for an extended review by FERC in its project plans, so no impact on the Markets+ timeline is expected.
Draft Markets+ phase two funding agreements are complete, and on August 30, SPP began sharing these drafts with phase one participants and other parties interested in joining Markets+ phase two development. The initial response to these draft agreements has been positive, and we are on schedule to have agreements executed by the end of 2024.
Markets+ participants have issued several letters of support during the development process and have produced a series of issue alerts designed to inform interested parties about the Markets+ value proposition relative to other market options.
SPP has launched a Markets+ Newsletter to keep participants and interested parties informed of Markets+ news and development. To automatically receive this monthly publication, log in to your SPP.org account and add the Markets+ exploder distribution list to your profile. You can also keep up with Markets+ news and resources at www.marketsplus.org
The MPEC will next meet Nov. 12 in Portland, Oregon.
IMIP | MPEC | MDWG | MSWG | MTWG | MORWG
MGHGTF | MCRTF | MRATF | MRTF
SPP reached a significant milestone June 4, when it filed with FERC amendments to its tariff that include provisions specific to its western members. Pending FERC’s approval, SPP will become the first organization in the U.S. to provide full regional transmission organization (RTO) services in both the Eastern and Western Interconnections of the nation’s power grid beginning in early 2026.
The entities pursuing RTO membership or expanded participation as part of the expansion of the SPP RTO are Basin Electric Power Cooperative; Colorado Springs Utilities; Deseret Power Electric Cooperative; the Municipal Energy Agency of Nebraska (MEAN); Platte River Power Authority; Tri-State Generation and Transmission Association; and the Western Area Power Administration Colorado River Storage Project, Rocky Mountain region and Upper Great Plains region. These are the first western entities to participate in SPP’s Integrated Marketplace in the Western Interconnection.
The expansion of the SPP RTO is scheduled to go live April 1, 2026. Read more in the full release here.
Learn more about SPP's Western Services. Find meeting registration, contact information and materials at the additional stakeholder group links below:
WMEC | WMWG | WREC | WRWG
ECCWG | New Member | QOO
Consolidated Planning Process Task Force (CPPTF)
Following approval of the CPPTF’s entry fee framework document and policy direction, the task force has begun its work on revision requests. A plan for the consolidated planning process (CPP) tariff revision request language has been developed, and a timeline has been created to identify the milestones that must be completed to prepare for the FERC filing in 2025.
Initial language revisions are being drafted and reviewed by SPP staff to ensure consensus before presenting to stakeholders. At its August meeting, the task force reached consensus regarding an improved approach for transitioning the existing Definitive Interconnection System Impact Study (DISIS) into the CPP.
During their Sept. 12 meeting, the task force continued working on a review of the GI DISIS study scope details, considered stakeholder buy-in and support regarding future and siting plans to be used in the CPP transition study scope, determined a network upgrade contribution (formerly known as the entry fee) calculation approach, and moved toward approval of the NRIS+ bridge plan revision request.
The group will continue to evaluate how the FERC Order 1920 for Transmission Planning and Cost Allocation will impact the CPP and develop action plans to address identified gaps and meet regulatory requirements.
Future Grid Strategy Advisory Group (FGSAG)
The Future Grid Strategy Advisory Group (FGSAG) is in the final stages of developing an addendum to the 2023 report to address Artificial Intelligence (AI), Grid Enhancing Technologies (GETs), Load of the Future, and advancement of the FERNs study. In addition, the Advisory Group hosted an AI Symposium on September 10 and anticipates prioritizing new recommendations from the addendum at the October 1 meeting.
Leadership & Oversight
The Regional State Committee (RSC) and Board of Directors and Members Committee (BOD/MC) held their business meetings and quarterly joint stakeholder briefing Aug. 5-6.
The RSC approved RR621 Fuel Assurance Policy and RR622 Planning Reserve Margin (PRM), a recommendation that includes a 36% winter season base PRM and 16% summer season PRM.
The RSC approved Mike Francis (LPSC), Kristie Fiegen (SD PUC), and Andrew French (KCC) as the nominating committee to develop a slate of nominees for Officers of the RSC Board for 2025.
The BOD approved the following RRs as approved by the RSC: RR621 Fuel Assurance Policy and RR622 Planning Reserve Margin (PRM), a recommendation that includes a 36% winter season base PRM and 16% summer season PRM.
After the Finance Committee (FC) Report, the BOD approved a motion to approve a Schedule 1-A tariff rate cap increase to $0.515/MWh and directed SPP staff and members to develop the associated tariff change.
After the MOPC report, the BOD approved the recommended Definitive Interconnection System Impact Study (DISIS) Waiver Proposal.
Minutes from the meetings of the RSC and BOD can be found on spp.org. The RSC and BOD/Members Committee will next meet October 28-29 at the SPP Headquarters Office in Little Rock. Register for the RSC and Quarterly Joint Stakeholder Briefing meeting here, and the BOD/MC meeting here.
The Strategic Planning Committee (SPC) met July 17 and received updates about the goals and strategies identified in SPP’s strategic plan. This quarter’s ASPIRE Moment focused on RTO expansion and completed milestones, including SPP being the first to operate an interstate RTO in the Western Interconnection.
The SPC also discussed how SPP can improve its load forecasting process, how the National Interest Electric Transmission Corridor (NIETC) could be beneficial to SPP, and an approach for developing additional Grid Enhancing Technologies (GET)-related policies and business processes to maximize transmission capacity.
The committee heard updates on how FERC Order 1920 was impacting implementation of the consolidated planning process (CPP) and the transition from the current Generator Interconnection (GI) queue to the CPP
The Corporate Governance Committee (CGC) met August 15. During its meeting it approved a change of status for the Reliability Compliance Group to transition to the Reliability Compliance User Forum.
BOD/MC | RSC | CAWG | CGC | Finance | HRC | Oversight | SPC
Adaptive Governance
SPP identified “Adaptive Governance” as an enabling capability in its ASPIRE 2026 strategic plan. At the August 15 CGC meeting, the CGC approved governing document revisions to expand the Strategic Planning Committee (SPC) to mirror the sector-based composition of the Members Committee (MC). Additionally, it will implement processes for sectors to nominate individuals to represent their sector on both the SPC and the MC. These recommendations will be presented to the SPP Membership and BOD, for consideration in October.
The CGC is working to develop proposals related to working group composition and term limits for working group chairs. The CGC will continue its work on adaptive governance during its virtual meeting on November 19, 2024.
Stewardship & Value
As of June 30, SPP is forecasting the 2024 gross revenue requirement (GRR) to be $213.9 million, which is 1.6% under the GRR budget of $217.3 million.
SPP's 2023 Member Value Statement found that SPP provided $3.621 billion in savings and benefits to its members with a 20 to 1 benefit to cost ratio when compared to the cost of membership in the SPP RTO. Members can also use a worksheet to help estimate a portion of the unique value each of their organizations receive from SPP.
The newly released 2023 SPP Annual Report highlights the year’s accomplishments, challenges and milestones while celebrating the dedicated work of our staff and stakeholders. Read how we maintained operational excellence, provided $3.6 billion in value to our members, and took steps to assess and modernize our resource adequacy approach.
Other Information
Have questions? Contact SPP Communications
Southwest Power Pool: working together to responsibly and economically keep the lights on today and in the future
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