Item E-2 | Docket No. AD26-10
The Federal Energy Regulatory Commission (FERC) today ordered the California Independent System Operator Corporation (CAISO) and Southwest Power Pool, Inc. (SPP) to detail their progress in coordinating operations along their seams. This order reflects FERC’s focus on strengthening reliability and enhancing market efficiencies across the region.
CAISO and SPP must submit a joint report to FERC by September 30, 2026, detailing their coordination efforts related to seams (where they adjoin) between the SPP and CAISO markets themselves, and between either SPP or CAISO markets and neighboring balancing authorities.
The directive marks a significant step toward addressing the challenges of a rapidly evolving electric grid landscape in the West, where shifting market boundaries and overlapping operations create reliability and efficiency hurdles.
“Bringing CAISO and SPP together isn’t just another procedural step, it’s about making sure our grid operators are aligned, and operations remain coordinated across the region,” said FERC Chairman Laura V. Swett. “When operators communicate clearly and coordinate well, communities and businesses across the West should realize great reliability and economic benefits. This collaboration will help us address challenges more effectively and build a stronger, more reliable energy future for everyone in the region.”
The joint report must address current coordination initiatives, identify specific operational challenges arising from new market developments, outline plans and schedules for resolving issues, and identify areas where the operators have yet to align.
Public comments on the report will be accepted for 30 days post-filing, focusing solely on seams management and market coordination issues discussed in the report.