Total savings from SPP’s markets cross the $1 billion mark
As of September 2016, Southwest Power Pool’s (SPP) wholesale electricity markets have reduced the cost of electricity by more than $1 billion since 2014, the regional transmission organization (RTO) announced Tuesday.
SPP’s Integrated Marketplace is the mechanism through which the grid operator facilitates the sale and purchase of electricity to ensure cost-effective electric reliability throughout their 14-state region. When they launched the marketplace in March 2014, SPP became the first RTO to do so on time and on budget.
In their first year of operation, the Integrated Marketplace delivered $380 million in net savings to SPP’s member companies and their customers, paying for itself in less than a year. The markets have provided market participants hundreds of millions of dollars in net savings annually and in September 2016 crossed the $1 billion threshold.
“Our markets provide tremendous value to the SPP region; that’s something we’ve known and demonstrated since they launched,” said SPP vice president of operations Bruce Rew. “The billion-dollar mark is an exciting milestone, and I’m proud that we reached it so quickly.”
Savings from SPP’s markets make up just a portion of the overall value the RTO affords its members. These and other services — including transmission expansion planning, reliability coordination, training, and more.
This milestone comes just weeks before SPP celebrates the 75th anniversary of its founding. The organization formed in December 1941 when 11 companies pooled resources to ensure power flowed without interruption to Jones Mill outside Malvern, Ark. — a critical producer of aluminum in support of the American war effort during World War II.
“We’ve worked with our members to keep the lights on for 75 years,” said SPP’s president and chief executive officer Nick Brown. “This is just one more example of the value that comes out of our stakeholder process. We’ve demonstrated through decades of success that our business model is built to stand the test of time, and we’ll keep on providing exceptional value and service to our members just like we’ve always done.”
SPP will mark the occasion of its anniversary with a celebratory gala for its stakeholders on October 24 and a dinner for its staff on December 3 and the publication of a book and a short documentary chronicling its 75-year history.
About Southwest Power Pool, Inc.
Southwest Power Pool, Inc. manages the electric grid and wholesale energy 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 diverse group of member companies coordinate the flow of electricity across 60,000 miles of high-voltage transmission lines spanning 14 states. The company is headquartered in Little Rock, Ark.