What is SPP? Regional Transmission Organization & Markets Overview

Southwest Power Pool (SPP) is a federally regulated Regional Transmission Organization (RTO) that coordinates reliable electric power for a large swath of the central United States. As the independent grid operator, SPP plans transmission, administers wholesale electricity markets, and balances real-time supply and demand across multiple states and utility territories. Through its centralized operations, SPP helps ensure reliability, fosters robust competition, and enables efficient access to diverse generation resources, including significant wind and growing solar.

SPP’s footprint spans portions of the Great Plains and Midwest, with responsibilities that include day-ahead and real-time market operations, regional reliability coordination, and long-range transmission planning. The organization’s Integrated Marketplace economically dispatches generation and manages transmission congestion while maintaining reliability standards set by NERC and overseen by the Federal Energy Regulatory Commission (FERC).

Governance at SPP is stakeholder-driven. A diverse membership—investor-owned utilities, municipals, cooperatives, independent power producers, and state regulators—participates in open committees that inform the Board of Directors. This collaborative model supports transparent rulemaking, continuous market design improvements, and coordinated operations across seams with neighboring regions.

Historical Development and Regulatory Authority

• Formed in 1941 as a regional power coordination entity
• Recognized by FERC as a Regional Transmission Organization (RTO) in 2004
• Launched the Integrated Marketplace in 2014 (day-ahead, real-time, congestion rights)
• Expanded services in the West with the Western Energy Imbalance Service (WEIS)
• Operates under FERC jurisdiction and observes NERC reliability standards

Core Functions and Services

Market Operations

• Integrated Marketplace (day-ahead and real-time) with centralized dispatch
• Locational marginal pricing and congestion management
• Financial Transmission Rights (TCR/FTR) auctions
• Ancillary services procurement and co-optimization

Reliability Coordination & Operations

• 24/7 reliability coordination across the SPP footprint
• Outage coordination and seasonal/winter readiness assessments
• Seams coordination with neighboring RTOs/ISOs and non-market Balancing Authorities
• Emergency operations procedures and reserve management

Transmission Planning & Interconnection

• Regional Transmission Expansion Plan (RTEP) and portfolio development
• Generator interconnection queue administration
• Cost allocation policies for regional upgrades
• Integration of renewable and storage resources

Current Initiatives and Future Direction

• Enhanced winterization/readiness and extreme weather resilience
• Western services expansion and seams harmonization
• Queue reform and transmission build-out to relieve congestion
• Market design enhancements for flexibility, storage, and hybrid resources

Contact and Resources

https://www.spp.org
Southwest Power Pool
201 Worthen Drive, Little Rock, AR 72223
Phone: (501) 614-3200