Southwest Power Pool: Difference between revisions
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{{Short description|American power-grid non-profit in the central Southern US}} |
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{{Multiple issues| |
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[[File:Rto map 2024.png|thumb|300x300px|[[Regional transmission organization (North America)|ISOs and RTOs]] of North America, 2024]] |
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{{more footnotes|date=November 2012}} |
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'''Southwest Power Pool (SPP)''' manages the electric grid and wholesale power market for the central United States. As a regional transmission organization, the nonprofit corporation is mandated by the Federal Energy Regulatory Commission to ensure reliable supplies of power, adequate transmission infrastructure and competitive wholesale electricity prices. Southwest Power Pool and its member companies coordinate the flow of electricity across approximately 60,000 miles of [[High voltage transmission line|high-voltage transmission lines]] spanning 14 states. The company is headquartered in Little Rock, [[Arkansas]].<ref>{{Cite web|url=https://www.spp.org/newsroom/|title=Newsroom|website=spp.org|access-date=2020-04-02}}</ref> |
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{{Primary sources|date=May 2008}} |
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[[File:NERC-map-en.svg|thumb|Map]] |
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| ⚫ | SPP's story began in the early days of [[World War II|WWII]], when America was ramping up production of weapons and military supplies. After entering the War, America needed to produce aluminum for aircraft manufacture. [[Alcoa]] and [[Reynolds Metals Company]] established themselves in Arkansas, which had the largest commercially exploitable [[bauxite]] deposit at that time.{{Citation needed|date=January 2022}} In 1941, government agency [[Defense Plant Corporation]] opened a plant in [[Jones Mill, Arkansas]], with the intent of operating 24/7 to supply the war effort. The government leased the plant to Alcoa for operations. |
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The '''Southwest Power Pool (SPP)''' is the founding member of the [[North American Electric Reliability Corporation|North American Electric Reliability Corporation (NERC)]]. It is headquarters are in [[Little Rock, Arkansas]]. The market lies on the western most edge of the [[Eastern Interconnection]]. Most of it's wind generation lies on the western edge of the footprint, while most of the major load centers lie on the eastern edge, creating a dynamic wherein power frequently flows west to east. Furthermore, its vast latitude enables wide temperature gradients and often contributes to significant north to south or south to north flows, depending on the season. |
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The Jones Mill Plant alone required 120 megawatts (MW) of electrical power to operate. This exceeded the state's entire generation of 100 MW at peak, excluding outages. Due to the war effort, there was not enough manpower or raw materials to build further electrical generation. Executives of Southwest power utilities decided to pool their generation resources together to ensure the region's reliability and dependability during wartime. The existence of Southwest Power Pool was out of necessity and scarcity. After the war, executives saw the expertise and efficiency that was created and decided to remain a power pool.{{Citation needed|date=January 2022}} |
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Because SPP relies on wind for such a large amount of its generation, price spikes and scarcity pricing are frequently seen due to ramp shortages caused by rapid, unexpected changes in demand-net-wind. As wind across the footprint continues to grow, so does the forecast error. This results in a quite volatile market. |
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| ⚫ | Southwest Power Pool, Inc. was formed Dec. 14, 1941, with 11 regional utilities entering into an inter-company agreement. The 11 companies were Arkansas Power & Light, Louisiana Power & Light, and Mississippi Power & Light (subsidiaries of [[Entergy]]), Southwestern Gas and Electric and Public Service Company of Oklahoma (now subsidiaries of [[American Electric Power]]), [[Nebraska Public Power District|Nebraska Power]], [[Energy Future Holdings|Texas Power & Light]], Southern Light and Power, [[Oklahoma Gas & Electric|Oklahoma Gas and Electric]], [[Westar Energy|Kansas Gas and Electric]], and [[Empire District Electric]]. |
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SPP is a coal driven market. |
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Here are some other notable events in SPP’s history:<ref>{{Cite web|url=https://www.spp.org/Documents/69129/SPP101%207.1.24%20(Web).pptx|title=SPP 101 slides|last=|first=|date=|website=|archive-url=|archive-date=|access-date=}}</ref> |
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1968 - Became NERC Regional Council |
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| ⚫ | SPP's story began in the early days of [[World War II|WWII]], when America was |
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1980 - Implemented telecommunications network |
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1991 - Implemented operating reserve sharing |
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1994 - Incorporated as nonprofit |
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1997 - Implemented reliability coordination |
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1998 - Implemented tariff administration |
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2004 - Became FERC-approved Regional Transmission Organization |
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2007 - Launched EIS market |
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2009 - Integrated Nebraska utilities |
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2010 - FERC approved Highway/Byway cost allocation methodology and Integrated Transmission Planning Process |
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2012 - Moved to new Corporate Center |
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2014 - Launched Integrated Marketplace Became regional [[balancing authority]] |
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2015 - Integrated System joins SPP |
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2018 - [[regional entity]] operation dissolved<ref name=fed84>{{Federal Register|84|705}}</ref> |
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2019 - Launched western reliability coordination services |
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2021 - Western Energy Imbalance Services (WEIS) market starts<ref>{{cite web |last1=Walton |first1=Robert |title='This is just the beginning': Southwest Power Pool begins operating Western imbalance market |url=https://www.utilitydive.com/news/this-is-just-the-beginning-southwest-power-pool-begins-operating-western/594334/ |website=Utility Dive |archive-url=https://web.archive.org/web/20210205215430/https://www.utilitydive.com/news/this-is-just-the-beginning-southwest-power-pool-begins-operating-western/594334/ |archive-date=5 February 2021 |date=2 February 2021 |url-status=live}}</ref> |
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| ⚫ | Southwest Power Pool was formed Dec. 14, 1941, with 11 regional utilities entering into an inter-company agreement. The 11 companies were |
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==Members and company status== |
==Members and company status== |
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SPP was incorporated as a nonprofit corporation in 1994 |
SPP was incorporated as a nonprofit corporation in 1994 and was approved as a [[Regional transmission organization|Regional Transmission Organization (RTO)]] by the [[Federal Energy Regulatory Commission|Federal Energy Regulatory Commission (FERC)]] in 2004.<ref>FERC Market Oversight</ref> |
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The SPP region lies within the [[Eastern Interconnection]] |
The SPP region lies within the [[Eastern Interconnection]] in the central [[Southern United States]], serving all of the states of [[Kansas]] and [[Oklahoma]], and portions of [[New Mexico]], [[Texas]], [[Arkansas]], [[Louisiana]], [[Missouri]], [[South Dakota]], [[North Dakota]], [[Montana]], [[Minnesota]], [[Iowa]], [[Wyoming]], and [[Nebraska]]. SPP members include investor-owned utilities, municipal systems, generation and transmission cooperatives, state authorities, independent power producers, and power marketers. SPP has many of the [[high voltage]] [[Direct current|direct current (DC)]] ties which connect the Eastern interconnection to the [[Western Interconnection]] and both of the DC ties to ERCOT [[Texas Interconnection]]. |
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SPP also provides services in the Western Interconnection as of 2019 in Colorado, New Mexico, Wyoming, Arizona, Montana, and Utah.<ref>{{Cite web|url=https://spp.org/newsroom/western-energy-services/western-rc-services/|title=Western RC Services}}</ref> |
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==Statistics== |
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SPP is developing an Energy Imbalance Service Market in the West as well.<ref>{{Cite web|url=https://spp.org/weis/|title=WEIS}}</ref> |
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SPP has roughly 67,000 miles of transmission lines. Its all time peak load was 50,622 MW in the summer of 2016 and its nameplate generating capacity is 89,999 MW as of January 1, 2019. SPP sources most of its power from coal, with wind and natural gas coming in second and third, respectively. The Southwest Power Pool also has the highest wind penetration of any ISO, with a wind penetration record of 66.5% on April 21, 2019. This significantly higher than ERCOT's wind penetration record (54%). |
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== Notes == |
== Notes == |
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==External links== |
==External links== |
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* [http://www.spp.org Home Page] |
* [http://www.spp.org Home Page] |
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* [ |
* [https://spp.org/about-us/ History of SPP] |
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* [ |
* [https://www.ferc.gov/industries-data/electric/electric-power-markets/spp Southwest Power Pool Overview (FERC)] |
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{{North American Electric Reliability Corporation}} |
{{North American Electric Reliability Corporation}} |
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[[Category:1941 establishments in the United States]] |
[[Category:1941 establishments in the United States]] |
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[[Category:Organizations established in 1941]] |
[[Category:Organizations established in 1941]] |
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[[Category:Wide area synchronous grids]] |
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Latest revision as of 17:02, 1 August 2024
Southwest Power Pool (SPP) manages the electric grid and wholesale power market for the central United States. As a regional transmission organization, the nonprofit corporation is mandated by the Federal Energy Regulatory Commission to ensure reliable supplies of power, adequate transmission infrastructure and competitive wholesale electricity prices. Southwest Power Pool and its member companies coordinate the flow of electricity across approximately 60,000 miles of high-voltage transmission lines spanning 14 states. The company is headquartered in Little Rock, Arkansas.[1]
History
[edit]SPP's story began in the early days of WWII, when America was ramping up production of weapons and military supplies. After entering the War, America needed to produce aluminum for aircraft manufacture. Alcoa and Reynolds Metals Company established themselves in Arkansas, which had the largest commercially exploitable bauxite deposit at that time.[citation needed] In 1941, government agency Defense Plant Corporation opened a plant in Jones Mill, Arkansas, with the intent of operating 24/7 to supply the war effort. The government leased the plant to Alcoa for operations.
The Jones Mill Plant alone required 120 megawatts (MW) of electrical power to operate. This exceeded the state's entire generation of 100 MW at peak, excluding outages. Due to the war effort, there was not enough manpower or raw materials to build further electrical generation. Executives of Southwest power utilities decided to pool their generation resources together to ensure the region's reliability and dependability during wartime. The existence of Southwest Power Pool was out of necessity and scarcity. After the war, executives saw the expertise and efficiency that was created and decided to remain a power pool.[citation needed]
Southwest Power Pool, Inc. was formed Dec. 14, 1941, with 11 regional utilities entering into an inter-company agreement. The 11 companies were Arkansas Power & Light, Louisiana Power & Light, and Mississippi Power & Light (subsidiaries of Entergy), Southwestern Gas and Electric and Public Service Company of Oklahoma (now subsidiaries of American Electric Power), Nebraska Power, Texas Power & Light, Southern Light and Power, Oklahoma Gas and Electric, Kansas Gas and Electric, and Empire District Electric.
Here are some other notable events in SPP’s history:[2]
1968 - Became NERC Regional Council
1980 - Implemented telecommunications network
1991 - Implemented operating reserve sharing
1994 - Incorporated as nonprofit
1997 - Implemented reliability coordination
1998 - Implemented tariff administration
2004 - Became FERC-approved Regional Transmission Organization
2007 - Launched EIS market
2009 - Integrated Nebraska utilities
2010 - FERC approved Highway/Byway cost allocation methodology and Integrated Transmission Planning Process
2012 - Moved to new Corporate Center
2014 - Launched Integrated Marketplace Became regional balancing authority
2015 - Integrated System joins SPP
2018 - regional entity operation dissolved[3]
2019 - Launched western reliability coordination services
2021 - Western Energy Imbalance Services (WEIS) market starts[4]
Members and company status
[edit]SPP was incorporated as a nonprofit corporation in 1994 and was approved as a Regional Transmission Organization (RTO) by the Federal Energy Regulatory Commission (FERC) in 2004.[5]
The SPP region lies within the Eastern Interconnection in the central Southern United States, serving all of the states of Kansas and Oklahoma, and portions of New Mexico, Texas, Arkansas, Louisiana, Missouri, South Dakota, North Dakota, Montana, Minnesota, Iowa, Wyoming, and Nebraska. SPP members include investor-owned utilities, municipal systems, generation and transmission cooperatives, state authorities, independent power producers, and power marketers. SPP has many of the high voltage direct current (DC) ties which connect the Eastern interconnection to the Western Interconnection and both of the DC ties to ERCOT Texas Interconnection.
SPP also provides services in the Western Interconnection as of 2019 in Colorado, New Mexico, Wyoming, Arizona, Montana, and Utah.[6] SPP is developing an Energy Imbalance Service Market in the West as well.[7]
Notes
[edit]- ^ "Newsroom". spp.org. Retrieved 2020-04-02.
- ^ "SPP 101 slides".
- ^ 84 FR 705
- ^ Walton, Robert (2 February 2021). "'This is just the beginning': Southwest Power Pool begins operating Western imbalance market". Utility Dive. Archived from the original on 5 February 2021.
- ^ FERC Market Oversight
- ^ "Western RC Services".
- ^ "WEIS".
References
[edit]- FERC. "FERC Market Oversight". FERC. Retrieved 2009-01-12.