FERC approves Southwest Power Pool's transmission planning proposal

Source: The Federal Energy Regulatory Comission

The Federal Energy Regulatory Commission (FERC) today accepted the Southwest Power Pool (SPP) transmission planning proposal that will determine SPP’s transmission needs to maintain reliability and provide economic benefits in the region.

“SPP’s transmission planning approach is a novel and proactive one that I am pleased to support today.” FERC Chairman Jon Wellinghoff said. “I believe that expanding the grid smartly will promote more competitive markets and lower costs to consumers.”

The Integrated Transmission Plan (ITP) includes 20-year, 10-year and near-term assessments to determine transmission needs. The plan focuses on higher-voltage facilities for longer-term planning, specifically 300 kv and above for 20-year assessments and 100-300 kv for 10-year assessments. The near term assessment is for meeting reliability needs and compliance with North American Electric Reliability Corporation (NERC) standards.
Today’s decision enables SPP and its stakeholders to use the ITP to determine the facilities to be built, the cost of which will be recovered under its Highway/Byway cost allocation plan, which FERC approved on June 17.

FERC said that the ITP is consistent with the transmission planning principles of Order No. 890, which was issued in February 2007. Order No. 890 directed transmission providers to develop a transmission planning process that satisfies nine principles: coordination, openness, transparency, information exchange, comparability, dispute resolution, regional participation, economic planning studies and cost allocation for new projects.

SPP provides services to 5 million customers in Arkansas, Kansas, Louisiana, Missouri, Nebraska, New Mexico, Oklahoma and Texas.

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