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Electric Power Markets: Southwest Power Pool (SPP)

Southwest Power Pool (SPP) Regions  
2007 Southwest Power Pool (SPP) Regions  

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    On December 1, 2008, SPP added a new municipal member, Lincoln Electric System (LES); and two new state agencies, Nebraska Public Power District (NPPD) and Omaha Public Power District (OPPD).

    States covered: Kansas, Oklahoma, most of Nebraska, and parts of New Mexico, Texas, Louisiana, Missouri, Mississippi and Arkansas

    Reliability region: Southwest Power Pool (SPP)

    Balancing authorities: Balancing authorities are responsible for managing the minute-to-minute supply/demand balance for electricity within their borders to assure reliability. The SPP regional footprint is comprised of 16 balancing authorities:

    CSWS - (AEPW) American Electric Power West* CLEC - CLECO Power
    EDE - Empire District Electric GRDA - Grand River Dam Authority
    INDN - Independence Power & Light KACY - Kansas City Board of Public Utilities
    KCPL - Kansas City Power & Light  LAFA - City of Lafayette, Louisiana
    LEPA - Louisiana Energy & Power Authority MPS - KCP&L Greater Missouri Operations
    OKGE - OG+E Electric Services SECI - Sunflower Electric
    SPA - Southwestern Power Administration SPS - Southwestern Public Service
    WR - Westar Energy   WFEC - Western Farmers Electric Coop
    * Formerly Central and South West Services

    There are five different SPP footprints: Regional Entity, Reserve Sharing Group, Reliability Coordinator (RC) Area, Regional Transmission Organization/Tariff, EIS Market Region. More information regarding these footprints is available at: SPP Footprints PDF External Link

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    Southwest Power Pool (SPP) (granted RTO status in 2004) provides transmission service on the transmission facilities owned by its members and operates the region's real-time energy imbalance service (EIS) market. Market participants trade physical electricity bilaterally, either directly or through brokers, and through the EIS market.

    Southwest Power Pool 2008 State of the Markets Report PDF External Link

    Market Monitor:
    Richard Dillon - Director, Market Development & Analysis
    Boston Pacific Company, Inc. - External Market Advisor

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    Marginal fuel type: Natural gas (55%) and coal (35%)

    Firm generating capacity - summer 2008: 50,600 MW

    Capacity reserve - summer 2008: 7,709 MW

    Reserve margin - summer 2008: 18%

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    Regional Footprint Peak Demand for 2008: 42,891 MW, reached in August.

    Peak Demand Growth 2007-2008: 0.7%

    All time peak demand:
      Reliability Footprint: 43.3 GW (set August 14, 2007)
      Market Footprint: 35.9 GW (set August 14, 2007)
      In the summer of 2007 demand reached record levels due to extremely hot weather.

      2005 2006 2007 2008
    Summer Peak Demand (GW) 40.5 42.2 43.3 42.9
    Source: Derived from SPP Data

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    Annual Average of Platts Daily Spot Price Index

    SPP North
    2004: $45.19/MWh
    2005: $67.44/MWh
    2006: $55.84/MWh
    2007: $60.21/MWh
    2008: $68.77/MWh

Updated: February 26, 2015