What's Happening?
The Southwest Power Pool (SPP) has submitted a proposal to the Federal Energy Regulatory Commission (FERC) to merge its transmission planning and generator interconnection processes. This 'consolidated planning process' aims to provide a more comprehensive
approach to identifying and planning transmission solutions that benefit both load and generation. The proposal is designed to expedite interconnection requests and offer better upfront cost certainty for interconnection customers. SPP's initiative comes in response to increasing demand across its service area, which spans from the Texas Panhandle to North Dakota. The region has seen a nearly 11% rise in peak demand over the past four years, prompting the need for more efficient transmission planning.
Why It's Important?
The proposed merger of transmission planning and interconnection processes by SPP is significant as it addresses the growing demand for electricity in the region. By ensuring optimal transmission upgrades are built at the right time, the proposal aims to improve grid reliability and efficiency. This change could lead to more predictable costs for interconnection customers, potentially accelerating the addition of new power supplies. The initiative also seeks to reduce delays caused by speculative projects and withdrawals from the interconnection queue, which have historically slowed progress. If successful, this approach could serve as a model for other regions facing similar challenges.
What's Next?
SPP has requested FERC to approve the 'phase 1' of the consolidated planning process by January 31, with an effective date of March 1. The grid operator plans to introduce additional changes to further align study processes and cost allocation methods with the evolving power sector. SPP's proposal includes establishing subregional cost allocation within its existing highway/byway structure, which could alter how future upgrades are funded. Stakeholders, including interconnection customers and regional load payers, will likely monitor these developments closely, as they could impact future transmission project costs and timelines.
