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.