SPP reports $2.14B in annual savings for members, unveils new mission and vision to board of directors
LITTLE ROCK, ARK. — At the April 26-27 meetings of its Regional State Committee and Board of Directors/Members Committee, Southwest Power Pool (SPP) touted the significant savings it provides its members and unveiled a new mission and vision statement to guide its continued evolution.
The regional grid operator recently completed a yearlong effort to calculate the benefits of SPP membership. SPP worked with member utilities to affirm the methodology by which it quantifies the value of services like reliability coordination, transmission planning, administration of its wholesale markets and more. The 2021 Member Value Statement concluded that SPP provides $2.14 billion in annual savings to members at a benefit-to-cost ratio of 14-to-1.
More information about the value of SPP is at www.SPP.org/about-us.
SPP Chief Operating Officer Lanny Nickell reported on a series of indicators that paint a favorable picture of SPP’s overall performance. Based on system and survey data, stakeholder feedback and internal metrics, SPP’s first quarter key performance indicators show the organization meets or exceeds its customers’ expectations in three of four broad categories:
- Its diverse stakeholders’ engagement and support of organizational initiatives.
- SPP’s balance of economics and reliability while responsibly providing valuable services at affordable costs.
- Staying ahead of industry trends while enacting a forward-looking strategy and growing in ways beneficial to its members.
The report noted one category in which SPP needs improvement: operational performance. Nickell explained this was due to the February 2021 winter storms during which SPP responded quickly and preserved the integrity of the grid but nevertheless had to direct controlled outages as a last resort. A comprehensive review of SPP’s response to the winter storm is underway, and staff will present their analysis and recommendations to the board in July.
The board approved SPP’s new mission, vision and value proposition statements defined as part of a larger strategic planning effort still underway. The revised mission statement, “Working together to responsibly and economically keep the lights on, today and in the future,” acknowledges SPP’s active role in working alongside stakeholders to ensure electricity is delivered with a balance of fiscal, social, environmental and economic considerations in mind. With its new vision statement, “Leading our industry to a brighter future while delivering the best energy value,” SPP defines an aspiration to find innovative ways to create a world in which people have more accessible, reliable, sustainable, flexible and affordable power.
SPP’s 2020 Annual Report is available online now and recaps the organization’s accomplishments, challenges and other milestones over the last year.
About SPP: Southwest Power Pool, Inc. is a regional transmission organization: a not-for-profit corporation mandated by the Federal Energy Regulatory Commission to ensure reliable supplies of power, adequate transmission infrastructure and competitive wholesale electricity prices on behalf of its members. SPP manages the electric grid across 17 central and western U.S. states and provides energy services on a contract basis to customers in both the Eastern and Western Interconnections. The company’s headquarters are in Little Rock, Arkansas. Learn more at SPP.org.