EL26-68-000 · 2026-07-20 · Southwest Power Pool, Inc.
SPP reports on resource adequacy and large-load proposals
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UNITED STATES OF AMERICA
BEFORE THE
FEDERAL ENERGY REGULATORY COMMISSION
Southwest Power Pool, Inc.
)
Docket No. EL26-68-000
INFORMATIONAL REPORT OF
SOUTHWEST POWER POOL, INC.
Southwest Power Pool, Inc. (“SPP”) respectfully submits this Informational Report
in response to the directive issued by the Federal Energy Regulatory Commission
(“Commission”) in its June 18, 2026, Order Instituting Proceeding Under Section 206 of
the Federal Power Act in Docket No. EL26-68-0001 (“Show Cause Order”). In the Show
Cause Order, the Commission directed SPP to provide, within thirty days, a detailed
informational report describing: (1) any proposals under consideration in SPP's stakeholder
process to address resource adequacy associated with new large loads, or, to the extent no
such proposals are under consideration, information regarding how SPP's existing
processes are operating to ensure resource adequacy; and (2) for any new proposals under
development, a detailed schedule identifying key stakeholder milestones, including
anticipated stakeholder and Board actions and the expected date for any future filing with
the Commission.2
I.
EXECUTIVE SUMMARY
SPP appreciates the Commission's recognition that unprecedented growth in
electric demand from data centers, advanced manufacturing, industrial electrification, and
other large load customers presents both opportunities and challenges for the electric
1
Sw. Power Pool, Inc., 195 FERC ¶ 61,213 (2026) (“Show Cause Order”).
2
Show Cause Order at P 91.
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2
industry. SPP likewise recognizes the importance of integrating these new loads in a
manner that preserves reliability, maintains resource adequacy, and protects existing
customers from unreasonable costs.
As large load requests have increased in both number and size, SPP has worked
with stakeholders to develop processes that not only evaluate the transmission impacts
associated with these customers but also facilitate the timely addition of new generating
resources capable of serving that demand. Rather than relying on a single solution, SPP has
developed complementary initiatives that improve planning certainty, accelerate the
addition of new resources, enhance operational flexibility, strengthen resource adequacy
accountability, and better align transmission and interconnection processes with the unique
characteristics of emerging large loads.
As discussed in greater detail below, these efforts include:
•
the Expedited Resource Adequacy Study ("ERAS"), which accelerates evaluation
of new generating resources intended to support resource adequacy;3
•
the Provisional Load Process, which allows SPP to study proposed delivery point
additions using both existing Designated Resources and identified planned
generation that is expected to serve the new load;4
3
Submission of Tariff Revisions to Implement the Expedited Resource Adequacy Study of
Southwest Power Pool, Inc., Docket No. ER25-2296-000 (May 22, 2025) (“ERAS Filing”).
Tariff, Attachment AW.
4
Submission of Tariff Revisions to Implement a Provisional Load Process of Southwest
Power Pool, Inc., Docket No. ER26-2430-000 (June 4, 2025) (“Provisional Load Process
Filing”). Tariff, Attachment AX.PDF page 3
3
•
enhanced study procedures for High Impact Large Loads (“HILLs”) to enable SPP
to assess the load’s reliability impacts on the Transmission System;5
•
the High Impact Large Load Generation Assessment ("HILLGA") process, which
consists of a new generator interconnection service and related interconnection
process to allow the limited connection of supporting generation for HILLs on an
expedited basis;6
•
the Conditional High Impact Large Load Service ("CHILLS"), which allows a
HILL (or a portion of a HILL) to receive the transfer of energy on a long-term, non-
firm basis in instances where transmission service is unavailable due to the lack of
existing Designated Resources or completion of Network Upgrades necessary to
provide firm transmission service;7
•
the Peak Demand Assessment (“PDA”) and Demand Response reforms, which
strengthen resource adequacy through enhanced load forecasting accountability and
expanded integration of Demand Response Resources, including the Reliability-
Registered Demand Response Program (“RRDRP”);8
5
Submission of Tariff Revisions to Add the High Impact Large Load Processes and High
Impact Large Load Generation Assessment of Southwest Power Pool, Inc., Docket No.
ER26-247-000, at 11 (Oct. 24, 2025) (“HILL Filing”). Tariff, Attachment BA, Section 2.
6
HILL Filing at 11. Tariff, Attachment BB.
7
Submission of Tariff Revisions to Add Conditional High Impact Large Load Service of
Southwest Power Pool, Inc., Docket No. ER26-1323-000, at 10 (Feb. 10, 2026) (“CHILLS
Filing”). Tariff, Part VII and Attachment BC.
8
Submission of Tariff Revisions Regarding the Peak Demand Assessment and Demand
Response of Southwest Power Pool, Inc., Docket No. ER26-2249-000 (April 17, 2026)
(“PDA Filing”). This proceeding is pending before the Commission with a requested
effective date of January 1, 2027.PDF page 4
4
•
the Consolidated Planning Process (“CPP”), which modernizes SPP's regional
transmission planning framework by evaluating transmission needs using
coordinated assumptions and integrated studies that better account for significant
load growth, including emerging large loads;9 and
•
continued stakeholder development of the Price Adaptive Load (“PAL”) product
and Price Adaptive Load Service ("PALS"), intended to address the evolving needs
and desire for flexibility of large load customers while preserving system
reliability.10
Although several of these initiatives have only recently become effective, they
represent significant changes to SPP's transmission service, markets, operations, resource
adequacy and interconnection frameworks and provide important tools for ensuring that
integration of large loads into the SPP Region is done in a way that facilitates the continued
safe and reliable operation of the Transmission System. The Commission has repeatedly
recognized SPP's proactive approach to addressing large load growth, emphasizing the
innovative and forward-looking nature of these reforms.
This report provides details regarding the evolution of these existing processes,
explains how they collectively contribute to resource adequacy, and describes ongoing
stakeholder efforts to implement additional enhancements. As with prior large load
initiatives, any future Tariff revisions will be developed and approved through SPP's
9
Submission of Revisions to the SPP Open Access Transmission Tariff to Implement the
Consolidated Planning Process of Southwest Power Pool, Inc., Docket No. ER26-414-
000 (Nov. 3, 2025) (“CPP Filing”). Tariff, Attachment AY.
10
See Price Adaptive Load Service Revision Request posted at: https://www.spp.org/spp-
documents-filings/?id=21069 (see zip file “RR791 SIR796 Price Adaptive Load”) (“RR
791”).PDF page 5
5
established stakeholder process before being submitted to the Commission for review.
Consistent with the Commission's directive, this report also provides the anticipated
schedule for stakeholder consideration of the PAL/PALS proposal currently under
development.
II.
BACKGROUND
A.
SPP
SPP is a Commission-approved Regional Transmission Organization (“RTO”).11 It
is an Arkansas non-profit corporation with its principal place of business in Little Rock,
Arkansas. SPP currently has 154 members, including 16 investor-owned utilities, 16
municipal systems, 26 generation and transmission cooperatives, 6 state agencies, 28
independent power producers, 11 power marketers, 18 independent transmission
companies, 3 federal agencies, 18 large retail customers, 4 alternative power entities, and
8 public interest entities. As an RTO, SPP: (1) administers, across the facilities of SPP’s
Transmission Owners, open access transmission service over approximately 85,000 miles
of transmission lines in the Eastern and Western Interconnections covering portions of
Arizona, Arkansas, Colorado, Iowa, Kansas, Louisiana, Minnesota, Missouri, Montana,
Nebraska, New Mexico, North Dakota, Oklahoma, South Dakota, Texas, Utah, and
Wyoming; and (2) administers the Integrated Marketplace, a centralized day-ahead and
real-time Energy and Operating Reserve market with locational marginal pricing and
market-based congestion management.12 SPP also implements a resource adequacy
11
Sw. Power Pool, Inc., 109 FERC ¶ 61,009 (2004), order on reh’g, 110 FERC ¶ 61,137
(2005).
12
Sw. Power Pool, Inc., 146 FERC ¶ 61,130 (2014) (approving the start-up and operation of
the Integrated Marketplace).
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program under Attachment AA of the Tariff, under which Load Responsible Entities
(“LRE”) must demonstrate sufficient accredited resource capacity to satisfy their load and
an SPP-established Planning Reserve Margin (“PRM”) for the Summer Season and Winter
Season, or else face significant charges for failure to meet their Resource Adequacy
Requirement (“RAR”).
B.
Role of Stakeholders and States in SPP
SPP operates under a stakeholder-driven governance model in which proposed
revisions to the Tariff, Bylaws, Membership Agreement, and business practices are
developed through an open, collaborative process involving market participants,
transmission owners, state regulators, and other stakeholders before being considered by
the SPP Board of Directors (the "Board") and, where applicable, filed with the
Commission. This Commission-approved governance framework, established in SPP's
Bylaws, Membership Agreement, and organizational governance documents, provides
multiple opportunities for stakeholder discussion, refinement, and voting as proposals
progress through technical working groups, policy committees, and ultimately to the
Board.
This collaborative governance structure has been central to SPP's response to
unprecedented large load growth. The stakeholder initiatives discussed throughout this
report were each developed through this established process with significant stakeholder
participation. Of particular importance are the SPP Regional State Committee ("RSC") and
the Resource and Energy Adequacy Leadership Team ("REAL Team"), both of which have
played key roles in shaping SPP's evolving resource adequacy framework. Under the SPP
Bylaws, the RSC possesses defined authority over regional cost allocation methodologyPDF page 7
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and resource adequacy matters.13 Complementing that role, the REAL Team was
established in January 2023 to evaluate SPP’s long-term resource adequacy construct and
to develop recommendations addressing emerging reliability challenges associated with
changes in the resource mix, extreme weather events, and rapidly increasing electric
demand.14
III.
CURRENT STATE OF RESOURCE ADEQUACY
Since adopting Attachment AA of the Tariff in 2018, SPP has continued to
strengthen its Resource Adequacy framework to address fundamental changes in the
resource mix and unprecedented demand growth across the SPP Region. Historically, the
Resource Adequacy program focused primarily on ensuring that each LRE procured
sufficient generating capacity to meet its forecasted seasonal peak demand plus an
established PRM.15 In recent years, however, accelerating growth in large commercial and
industrial loads together with generator retirements and an evolving resource mix have
13
Southwest Power Pool, Inc., Bylaws, First Revised Volume No. 4, Section 7.2. The RSC
has primary responsibility for determining regional proposals and the transition process in
the following areas: (1) whether and to what extent participant funding will be used for
transmission enhancements; (2) whether license plate or postage-stamp rates will be used
for the regional access charge; (3) determination of financial transmission rights (“FTRs”)
allocations where a locational price methodology is used; and (4) determination of the
transition mechanism to be used to assure that existing firm customers receive FTRs
equivalent to the customers’ existing firm rights; and (5) determination of the approach for
resource adequacy across the entire region.
14
Resource and Energy Adequacy Leadership Team, Organizational Group Scope Statement,
Southwest
Power
Pool,
Inc.
(Jan.
2023)
https://spp.org/documents/68934/real_scope_statement%20final.pdf. The REAL Team is
composed of members from the RSC, the Board, the Members Committee, the Strategic
Planning Committee, the Cost Allocation Working Group (“CAWG”), and the Supply
Adequacy Working Group (“SAWG”).
15
See Summer Resource Adequacy Report posted at:
https://spp.org/documents/76932/2026%20spp%20summer%20resource%20adequacy%2
0report.pdf (“Summer 2026 Resource Adequacy Report”).
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required SPP to modernize both its resource accreditation methodology and its load
forecasting processes.16
The most significant recent enhancement is SPP's transition to a planning margin
based on accredited capacity (Accredited Capacity Planning Reserve Margin, “Accredited
Capacity PRM”) framework beginning with the Summer 2026 Resource Adequacy
season.17 Under this framework, resource capability is no longer measured solely by
installed or nameplate capability. Instead, SPP utilizes Performance-Based Accreditation
(“PBA”) for conventional generation and Effective Load Carrying Capability (“ELCC”)
methodologies for wind, solar, and battery Resources to more accurately reflect each
resource's expected reliability contribution during periods of system stress.18 For Summer
2026, LREs were required to satisfy their RAR using accredited capacity and a system-
wide Accredited Capacity PRM of 7.06 percent.19
The transition to accredited capacity represents a significant advancement in SPP's
resource adequacy framework by aligning resource accreditation with actual performance
rather than simply relying on installed capability with limited testing to ensure capacity
adequacy in SPP. This provides a more accurate assessment of regional reliability while
16
Keeping the Lights On: Examining the State of Regional Grid Reliability (Testimony of
Lanny Nickell, Executive Vice President, Chief Operating Officer, Southwest Power Pool,
Inc. Before the House Energy & Commerce Subcommittee on Energy), 119th Cong., 3-4
(Mar. 25, 2025), available at:
https://www.congress.gov/119/meeting/house/118040/witnesses/HHRG-119-IF03-
Wstate-NickellL-20250325.pdf.
17
See Summer 2026 Resource Adequacy Report.
18
Id.
19
Id.; see also Conventional Resources Class Averages – Summer 2026 posted at:
https://spp.org/documents/74895/conventional%20unit%20class%20averages%20-
%20summer%202026.pdf.
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creating technology-neutral incentives for resource performance during critical system
conditions.
A.
Current Resource Adequacy Outlook
SPP's most recent Summer 2026 Resource Adequacy Report concludes that the SPP
Region is adequately positioned to meet expected Summer 2026 demand while also
providing an outlook through the Summer 2031 planning horizon.20 The report evaluates
existing accredited Resources, anticipated retirements, planned generation additions, and
projected demand growth across the SPP East Balancing Authority Area. For the 2026
Summer Season, all sixty-five LREs satisfied their RAR.21 Based on data submitted in the
2026 Summer Season Workbook, the East BAA maintains a reserve margin of 17.1%,
representing approximately 5,752 MW of excess accredited capacity above the total RAR.
This is an increase of approximately 2,500 MW of excess capacity compared to the 2025
Summer Season. More than half of all LREs maintain reserve margins exceeding 16%,
representing capacity in excess of approximately one-third of LRE forecasted Net Peak
Demand.22 The 2026 Summer Season Workbook does not address the West BAA because
the West BAA is not required to meet SPP’s resource adequacy processes and procedures
until summer 2027.
B.
Integration With Recent Large Load Initiatives
While current resource adequacy projections indicate that the East BAA is well
positioned to meet near-term demand, SPP recognizes that rapidly increasing load forecasts
20
See Summer 2026 Resource Adequacy Report.
21
Id.
22
See Summer 2026 Resource Adequacy Report.
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represent one of the greatest sources of uncertainty in future resource adequacy planning.
Much of this uncertainty stems from unprecedented load interconnection requests
associated with data centers and other large commercial and industrial customers, many of
which have historically been incorporated into utility load forecasts before development
plans were sufficiently mature. Traditional planning processes were designed to
accommodate incremental load growth rather than the addition of individual customers
with demand measured in hundreds of megawatts. Recognizing that accurate demand
forecasts are fundamental to effective resource adequacy planning, SPP also filed Tariff
revisions in April 2026 to implement the Peak Demand Assessment,23 establishing a more
structured process for validating forecasted peak demand and strengthening accountability
by ensuring that all loads (including projected large loads) for the upcoming season are
supported by sufficient amounts of Accredited Capacity.
IV.
SPP’S EXISTING FRAMEWORK FOR EVALUATING AND SERVING
NEW LARGE LOADS24
SPP has developed a coordinated framework of planning, interconnection,
transmission service, and resource adequacy processes to address growing demand and
support the reliable integration of new large loads. Rather than addressing large load
23
The PDA Filing is pending before the Commission.
24
While this Informational Report primarily focuses on the evolution of SPP policies directly
targeted at large load interconnections, SPP has implemented several complementary
initiatives that strengthen resource adequacy. These include annual updates to the Cost of
New Entry (“CONE”), which preserve appropriate incentives for LREs to procure
sufficient Accredited Capacity; implementation of the Consolidated Planning Process
(“CPP”), which integrates long-term transmission planning and generator interconnection
into a single, cohesive framework to better accommodate evolving resource and load needs
and speed up interconnection processing; and development of the Surplus Plus
interconnection reforms, which facilitate more timely additions of incremental generation
using existing transmission capability.
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requests as isolated transmission issues, SPP evaluates them through an integrated
framework designed to accommodate significant load growth while preserving the reliable
operation of the Transmission System.
A.
ERAS
On May 22, 2025, SPP submitted Tariff revisions to add the ERAS process
establishing a one-time, accelerated pathway for new generating resources to help address
urgent reliability needs through 2030.25 The Commission accepted the ERAS Filing on July
21, 2025, with an effective date of July 22, 2025.26 SPP developed ERAS in collaboration
with the RSC, REAL, and other stakeholders in response to the growing need to bring new
generation resources online on an accelerated timeline. ERAS enables LREs to identify
and secure the generating resources needed to maintain reliability across the SPP footprint,
comply with the resource adequacy requirements set forth in Attachment AA of the Tariff,
and satisfy their obligation to serve under applicable state or other governing law. To
qualify for ERAS, a project was required to address an LRE's projected resource adequacy
deficit, commit to achieving commercial operation within five years, and satisfy additional
criteria demonstrating that the project was sufficiently developed and reasonably likely to
achieve commercial operation in time to address identified resource adequacy needs.27
ERAS operates separately from, but in parallel with, SPP's standard Generator
Interconnection Procedures under Attachment V of the Tariff.
25
ERAS Filing at 25. Tariff, Attachment AW. At the time of the ERAS Filing, SPP predicted
that the SPP Region could face a 2-3 GW accredited capacity shortfall by 2030.
26
Sw. Power Pool, Inc., 192 FERC ¶ 61,062 (2025) (“ERAS Order”).
27
Tariff, Attachment AW, Section 8.2.
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As a one-time study, ERAS accepted requests during a limited application
window28 and is no longer accepting new requests as a one-time process. Participation by
LREs during the application window was strong. As of the date of this Informational
Report, there are 36 active ERAS requests representing approximately 13.3 GW of
generating capacity and no requests have withdrawn.29 These requests remain on schedule
in the study process. ERAS Generator Interconnection Agreements (GIA) are currently in
the negotiation phase and SPP expects to advance to the execution phase in September
2026. The process is on track to achieve its primary objective of accelerating the
interconnection of generating resources needed to address near-term resource adequacy
concerns. Although ERAS was designed as a one-time initiative, it demonstrated SPP's
ability to accelerate the development of reliability-critical generation through a targeted
stakeholder-driven process and established an important foundation for subsequent large
load and resource adequacy reforms.
B.
Provisional Load Process
On June 4, 2025, SPP submitted Tariff revisions to add a Provisional Load Process,
documented in Attachment AX of the Tariff.30 The Commission accepted the Provisional
Load Process Filing on October 10, 2025, with an effective date of August 4, 2025.31 While
28
Following Commission approval of the ERAS process on July 21, 2025, SPP opened the
one-time ERAS application window on September 2, 2025, and closed the window on
October 2, 2025.
29
See SPP Operations Portal of GI Active Requests posted at:
https://opsportal.spp.org/Studies/GIActive and
https://app.powerbigov.us/view?r=eyJrIjoiNTFhODQ5MjEtMTQ1My00ZjI5LWFjNWIt
ZmQ3NGQxNzM1ZDZiIiwidCI6IjMyMzA5MjZhLTcxYjctNDM3MC1hMTM3LTE5N2
JhZGMwNjZhMiJ9.
30
Provision Load Process Filing. Tariff, Attachment AX.
31
Sw. Power Pool, Inc., 193 FERC ¶ 61,018 (2025) (“Provision Load Process Order”).
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the HILL process described below is designed for large, high-impact loads, the Provisional
Load Process addresses a different challenge: the ability for SPP to study new proposed
load additions prior to the Transmission Customers having existing resources online to
support the new load. Under Attachment AQ, SPP may only study requests for new or
modified delivery points when the Transmission Customer demonstrates that its existing
Designated Resources are sufficient to serve both its existing forecasted load and the
proposed new load over a ten-year horizon.32 As requests associated with large loads
increased significantly, many Transmission Customers were unable to satisfy this
prerequisite because the generation intended to serve the load had not yet completed the
interconnection process or otherwise become an existing Designated Resource. As a result,
SPP was unable to evaluate numerous otherwise viable load requests under its then-existing
Tariff provisions.
The Provisional Load Process was developed to address this gap. Using the same
study methodologies used for other load connection studies, the Provisional Load Process
allows SPP to study proposed delivery point additions using both existing Designated
Resources and identified planned generation that is expected to serve the new load.33
Importantly, the Provisional Load Process, alone, does not provide transmission service
but instead serves as a planning mechanism that enables Transmission Customers to
identify the transmission upgrades necessary to accommodate future load while their
planned generation progresses through the applicable interconnection and transmission
32
Tariff, Part II, Section 17.9; Part III, Section 31.2; and Attachment AQ.
33
Tariff, Attachment AX.
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service processes.34 Because the generation relied upon in the study has not yet completed
the interconnection process and may ultimately change or fail to materialize, the revenue
requirements for Network Upgrades identified through the Provisional Load Process are
treated as Directly Assigned Upgrade Costs and are allocated 100% to the Transmission
Customer until the Transmission Customer acquires firm transmission service for the
planned generation.35 Once the planned generation obtains Long-Term Service and
becomes a Designated Resource, the remaining costs of those Network Upgrades transition
to Base Plan funding consistent with Attachment J of the Tariff36 and the Transmission
Customer’s Network Integration Transmission Service Agreement or Point-to-Point
Transmission Service Agreement is updated to reflect the requested changes.37 This
approach protects other loads within SPP from bearing the costs of upgrades associated
with speculative or uncertain generation while still allowing transmission planning to move
forward in support of anticipated load growth.
As described in more detail in the following sections, SPP modified Attachment
AX in the HILL and CHILLS Filings to integrate those frameworks into the existing
Attachment AX process by requiring additional studies and information for qualifying
34
The Transmission Customer must complete either the Aggregate Transmission Service
Study assessing the planned Designated Resource or the expedited process for resource
designation as described in Section 30.2.2 of the Tariff before the Transmission Customer’s
Network Integration Transmission Service Agreement or Point-to-Point Transmission
Service Agreement will be updated to reflect the requested changes. Tariff, Attachment AX,
Addenda 2 and 3.
35
Tariff at Attachment J, Section V; Tariff at Attachment AX, Addendum 2 at Sections 6.0
and 7.0; Tariff, Attachment AX, Addendum 3 at Sections 6.0 and 7.0
36
Tariff, Attachment J, Section III.A.
37
Tariff, Attachment AX, Addenda 2 and 3.
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HILLs and to provide Transmission Customers with additional flexibility when requesting
studies for new load additions.
C.
HILLs and the HILLGA
On October 24, 2025, SPP submitted Tariff revisions to add a HILL study process
and the HILLGA.38 The Commission accepted the HILL Filing on January 14, 2026, with
an effective date of January 15, 2026.39 The HILL Filing proposed two new mechanisms:
(1) the HILL study process set forth in Attachment BA; and (2) the HILLGA process set
forth in Attachment BB. The HILL Filing revisions (1) defined and created a new category
of load, termed a “HILL”; (2) established enhanced study requirements for HILLs to enable
SPP to assess the load’s reliability impacts on the Transmission System; and (3) established
additional, ongoing operational requirements for HILLs to ensure continued reliability of
the Transmission System.40 The HILLGA process consists of a new generator
interconnection service and related interconnection process to allow the limited connection
of supporting generation for HILLs on an expedited basis.41
The HILL Filing revisions built upon the original Attachment AX framework by
preserving Attachment AX as a vehicle through which HILLs may receive provisional
transmission service while layering on the HILL-specific study and operational
requirements established in Attachment BA. The revisions clarified that requests for new
or modified delivery points associated with a HILL remain eligible for study under
38
HILL Filing.
39
Sw. Power Pool, Inc., 194 FERC ¶ 61,031 (2026) (“HILL/HILLGA Order”).
40
HILL Filing at 11-38.
41
Tariff, Attachment BB.
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Attachment AX but must also satisfy the additional study and operational requirements
established in Attachment BA.
The Tariff defines a HILL as:
A new commercial or industrial load, or increase in commercial or industrial
load, at a single site connected through one or more shared Points of
Interconnection (POIs) or delivery points, where such load is either (1) 10
MW or more if connected to the Transmission System at a voltage level less
than or equal to 69 kV; or (2) 50 MW or more if connected to the
Transmission System at a voltage level greater than 69 kV. An Electric
Storage Resource is not considered a HILL. A load may be categorized as a
HILL after the initial effective date of Attachment BA of the Tariff. High
Impact Large Loads must register as such in accordance with Attachment
AE of the Tariff and follow the processes specified in Attachment BA of the
Tariff.42
SPP processes all load additions and modifications, including HILLs, using its
existing Attachment AQ, Attachment AX, and/or Attachment Z1 study processes.43
However, for HILLs, SPP and the applicable Transmission Owner(s) simultaneously
conduct additional studies under Attachment BA to ensure that the unique operational
characteristics of HILLs are considered when evaluating the addition of a HILL to the
Transmission System, and that SPP has mechanisms in place to maintain reliable operation
of the Transmission System.44 Attachment BA also imposes ongoing operational
requirements, including the addition of certain equipment, to ensure that SPP can continue
42
Tariff, Part I, Section 1, Definition of High Impact Large Load.
43
Through Attachment AQ, any existing customers may obtain firm transmission service for
the modification of an existing delivery point or for the creation of a new delivery point.
Under Attachment AX, existing customers may receive provisional study of a new or
modified delivery point using planned generation, instead of existing Designated
Resources. Lastly, new customers may receive transmission service for their load and
Resources through Attachment Z1.
44
Tariff, Attachment BA, Sections 2.1.3.4 and 2.1.3.5.
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to manage the Transmission System while accommodating the unique operational demands
and characteristics of HILLs.45
The HILLGA process, outlined in Attachment BB, facilitates the prompt
interconnection of generating resources that are specifically identified for and limited to
serving a HILL, at the request of the HILLGA Customer.46 SPP studies HILLGA Requests
outside of its existing generator interconnection process on a serial basis, but solely for the
impact of the Generating Facility47 to serve the identified HILL.48 Unlike traditional
interconnection service, HILLGA provides a limited form of interconnection service
specifically designed to evaluate generation intended to serve an identified HILL.49
D.
CHILLS
On February 10, 2026, SPP submitted Tariff revisions to add a CHILLS, that allows
HILLs to be served with non-firm conditional transmission service.50 The Commission
45
Tariff, Attachment BA, Section 2.2.
46
Tariff, Attachment BB, Section 2.
47
Tariff, Attachment BB, Section 1, Definition of Generating Facility (“will mean a HILLGA
Customer's device(s) for the production and/or storage for later injection of electricity
identified in the HILLGA Request, but will not include HILLGA Customer's
Interconnection Facilities and will not include a Storage as Transmission Only Asset as
defined in Section 1 of the Tariff. A Generating Facility consists of one or more generating
unit(s) and/or storage device(s) which usually can operate independently and be brought
online or taken offline individually.”).
48
Tariff, Attachment BB, Section 3.1.2.
49
Tariff, Attachment BB, Section 3.2. The HILLGA does not grant the Generating Facility
traditional generator interconnection service, such as Network Resource Interconnection
Service (“NRIS”) or Energy Resource Interconnection Service (“ERIS”); instead,
Generating Facilities studied under the HILLGA process receive much more limited “Load
Limited Resource Interconnection Service” or “LLRIS,” which only studies the impact of
the Generating Facility serving the identified HILL.
50
CHILLS Filing.
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accepted the CHILLS Filing on June 5, 2026, with an effective date of July 1, 2026.51
CHILLS builds on the HILL and HILLGA processes to help further unlock the
interconnection of large loads by facilitating service for HILLs by allowing a HILL (or a
portion of a HILL) to receive the transfer of energy on a long-term, non-firm basis.
The Attachment AQ and AX processes may delay service to otherwise ready HILLs
and postpone the economic benefits associated with those projects. Delays could be related
to construction of Network Upgrades or an inability to comply with the need to have
sufficient Designated Resources to support the HILL. CHILLS mitigates this challenge by
providing Transmission Customers with the ability to receive non-firm transmission
service to HILL delivery points before (1) completion of any applicable Network Upgrades
and/or (2) meeting the requirements for establishment of Designated Resources.52
The CHILLS Filing further built upon the Attachment AX framework by clarifying
which customers may be eligible for the Provisional Load Process. Specifically, a
Transmission Customer may request the study of a new load addition pursuant to
Attachment AX regardless of whether the Eligible Customer has sufficient Designated
Resources to support the study, provided that the Eligible Customer elects not to use its
existing Designated Resources for the proposed load addition.53 This framework provides
51
Sw. Power Pool, Inc., 195 FERC ¶ 61,196 (2026) (“CHILLS Order”).
52
Tariff, Part I, Section 1, Definition of Network Resource (“Any designated generating
resource owned, purchased or leased by a Network Customer under the Network
Integration Transmission Service Tariff. Network Resources do not include any resource,
or any portion thereof, that is committed for sale to third parties or otherwise cannot be
called upon to meet the Network Customer's Network Load on a non-interruptible
basis, except for purposes of fulfilling obligations under a reserve sharing program.”).
53
Tariff, Attachment AX, Section 1.
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flexibility to Transmission Customers in determining which Designated Resources will be
associated with new load additions when studied for firm transmission service under the
Tariff.
CHILLS includes numerous reliability protections, including supporting generation
requirements, enhanced engineering and operational studies, dedicated operating
agreements, separate metering requirements, and SPP's authority to curtail or interrupt
service during transmission constraints or Emergency Conditions. CHILLS are limited to
a maximum seven-year term and requires customers to pursue permanent firm transmission
service through existing Tariff processes, reinforcing that the service is intended as a
temporary bridge rather than a substitute for long-term transmission solutions.
Although CHILLS only recently became effective, SPP and its stakeholders
continue to evaluate potential enhancements to improve its implementation and operation.
SPP anticipates filing Tariff changes to clarify the sequencing of Resource commitments
and Reliability-Resource Demand Response Program (RRDRP) deployments relative to
CHILLs and establish a minimum Curtailment ramp rate for CHILLS.54 SPP also intends
to propose Tariff revisions permitting limited outages for Resources supporting certain
CHILLs.55 As a first-of-its-kind transmission service, CHILLS will continue to evolve. SPP
and its stakeholders will continue refining the service where appropriate to improve its
effectiveness while maintaining system reliability.
E.
PDA and Enhancements to the Participation of Demand Response
Resources
54
See CHILL Clarification Revision Request posted at: https://www.spp.org/spp-
documents-filings/?id=21069 (see zip file “RR767(SIR833) CHILL Clarification).
55
See CHILL Outage Criteria Revision Request posted at: https://www.spp.org/spp-
documents-filings/?id=21069 (see zip file “RR768(SIR823) CHILL Outage Criteria).
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On April 17, 2026, SPP submitted Tariff revisions to strengthen its Resource
Adequacy framework through implementation of a PDA and enhancements to the
participation of Demand Response Resources.56 The PDA Filing is pending before the
Commission with a requested effective date of January 1, 2027. The filing was developed
in response to accelerating load growth, including the emergence of large data center
demand, increasing uncertainty in load forecasting, and the continued evolution of the
resource mix across the SPP Region, including the anticipated increased reliance on
Demand Response Programs by LREs to meet the RAR while dealing with the
aforementioned load growth.
Just as SPP recently modernized how resource capability is measured through the
Accredited Capacity PRM framework, the PDA modernizes how demand is forecasted and
measured for resource adequacy purposes. Together, these reforms strengthen both sides
of SPP's resource adequacy framework by improving the accuracy of the capacity available
to serve load and the forecasted demand against which that capacity is evaluated. The PDA
shifts resource adequacy accountability from a solely forecast-based, pre-season
evaluation57 to a financially binding post-season assessment based on actual, weather-
normalized peak demand.
Under the revised framework, SPP would continue to validate each LRE’s qualified
capacity before each season through a new Pre-Season Requirement, while determining
compliance with the RAR after the season using verified demand data.58 This approach
56
PDA Filing.
57
Tariff, Attachment AA, Section 12 entitled, “Post-Season Analysis.”
58
PDA Filing at 6.
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addresses a key limitation of the existing framework by establishing accountability for
material under-forecasting of load while preserving the operational benefits of pre-season
resource qualification. By relying on actual metered data and weather-normalized peak
demand, the PDA better aligns resource adequacy obligations with actual system
conditions, particularly as large loads introduce greater variability and uncertainty into
forecasting.59
The PDA Filing also modernizes SPP's treatment of Demand Response Resources
by integrating qualifying Demand Response Resources more fully into the Resource
Adequacy framework.60 The revisions permit market-registered Demand Response
Resources to serve as capacity Resources, establish a new RRDRP that may receive
accredited capacity, implement performance-based accreditation using historical
performance, and enhance operational and deployment requirements to ensure dependable
performance during system stress and emergency conditions.61 These revisions provide
greater operational visibility into available Resources while creating incentives for both
accurate load forecasting and reliable Demand Response performance. Additionally, the
PDA filing permits LREs to implement non-registered load-modifying Demand Response
programs that are not registered in the Integrated Marketplace and do not qualify as
RRDRP. This flexibility allows LREs to actively manage their peak demand in real time,
supporting compliance with their load forecasts while ensuring their demand remains
consistent with the capacity they qualified for under the Pre-Season Requirement.
59
Id.
60
Id.
61
Id.
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Together, the PDA and Demand Response reforms complete a broader set of
coordinated transmission planning, interconnection, and resource adequacy reforms. When
considered alongside the previously approved Provisional Load Process, the HILL and
HILLGA frameworks, the ERAS reforms, and related stakeholder initiatives, these
measures illustrate SPP's integrated approach to accommodating significant load growth
while preserving reliability and ensuring resource adequacy.
F.
CPP
In addition to initiatives specifically focused on large loads and resource adequacy,
SPP has undertaken broader reforms to its regional transmission planning processes that
will improve the region's ability to identify and address transmission needs associated with
evolving load growth, changing resource portfolios, and increasing system complexity.
One such initiative is CPP, which streamlines multiple existing transmission planning
assessments into a single, coordinated planning framework.
Historically, SPP conducted several planning studies independently, each with
distinct objectives, assumptions, and study horizons. While these planning processes
provided valuable information, the separate study cycles could result in duplicative
analyses, differing assumptions, and limited opportunities to evaluate transmission needs
holistically. As the region experiences accelerating load growth—including requests to
serve large new loads—along with significant generation interconnection activity and
evolving resource adequacy needs, SPP recognized the value of integrating these planning
efforts into a unified process.
The CPP establishes a coordinated planning cycle that evaluates reliability,
economic, operational, and public policy-driven transmission needs using a common set of
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assumptions and coordinated stakeholder input. By consolidating these planning activities,
SPP is better positioned to evaluate transmission solutions across multiple planning
objectives, improve consistency in forecasting future system conditions, and identify
projects that provide broad regional benefits. The process also enhances transparency by
providing stakeholders with a single planning framework through which assumptions,
study methodologies, and recommended transmission solutions can be reviewed and
refined.
Although the CPP is not directed solely at accommodating large loads, it
strengthens the planning foundation needed to address significant changes in demand
across the SPP footprint. As large industrial facilities, data centers, electrification, and
other emerging loads increasingly influence long term transmission needs, the CPP
provides a more integrated process for evaluating how those loads interact with generation
development, resource adequacy requirements, and regional transmission expansion. This
integrated planning approach enables SPP to assess transmission needs using consistent
planning assumptions while considering the cumulative impacts of multiple drivers
affecting the Transmission System.
The CPP complements SPP's other initiatives discussed in this report, including
enhancements to the HILL framework, the HILLGA process, resource adequacy reforms,
and other transmission planning improvements. Together, these efforts are intended to
improve SPP's ability to plan for and reliably serve substantial new load growth while
maintaining an efficient, transparent, and stakeholder-driven regional planning process.
V.
PRICE ADAPTIVE LOADS (PALs) AND PRICE ADAPTIVE LOAD
SERVICE (PALS)
A.
Overview
PDF page 24
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The Price Adaptive Load (PAL) and Price Adaptive Load Service (PALS)
framework establishes a new market participation model and transmission service option
specifically designed for large, price-responsive loads.62 Unlike the initiatives discussed in
Section IV, PAL/PALS remains under active stakeholder development and has not yet been
submitted to the Commission. Accordingly, the discussion below summarizes the current
proposal and anticipated stakeholder schedule.
The PAL/PALS framework is intended to accommodate a new class of commercial
and industrial customers—such as certain data centers and advanced manufacturing
facilities—that are capable of adjusting or interrupting electricity consumption in response
to real-time market conditions while reducing reliance on traditional firm transmission
service. Participating PALs would be economically dispatched through SPP's Integrated
Marketplace based on submitted price-sensitive bids and would be required to respond to
dispatch instructions in both the Day-Ahead Market and Real-Time Balancing Market. To
support this market participation model, the proposal also creates Price Adaptive Load
Service (PALS), a new non-firm transmission service designed specifically for
dispatchable, flexible loads. Unlike traditional transmission service, PALS would utilize a
usage-based billing structure and require participating loads to be fully dispatchable,
capable of rapidly reducing consumption, and subject to Curtailment during transmission
constraints, Emergency Conditions, or local reliability events.
The PAL/PALS framework represents the next evolution of SPP's large load
strategy by providing a market-based option for flexible loads that complements SPP's
62
RR 791.
PDF page 25
25
existing planning, transmission service, interconnection, and resource adequacy reforms.
Where SPP's previously approved reforms focused primarily on ensuring that sufficient
generation, transmission capability, and planning processes exist to support unprecedented
load growth, the PAL/PALS proposal recognizes that some emerging large loads possess
operational flexibility that can itself become a valuable reliability and market resource. By
creating a market participation model and transmission service tailored to those
characteristics, PAL/PALS would complement SPP's existing framework while expanding
the range of tools available to integrate large flexible loads reliably and efficiently.
B.
Stakeholder Schedule and Expected Milestones
The PAL/PALS initiative is the product of extensive stakeholder development that
has included technical design, stakeholder education, Tariff drafting, and publication of the
associated Revision Request (RR). Development began with an internal team of SPP staff
meetings during the first quarter of 2026 to establish the framework and refine the
modeling approach. Beginning in April 2026, SPP initiated a broad stakeholder education
effort, presenting the concepts to the Cost Allocation Working Group (“CAWG”),
Operating Reliability Working Group (“ORWG”), Markets Working Group (“MWG”),
Regional Tariff Working Group (“RTWG”), and other stakeholder groups to introduce the
proposal and solicit early feedback.
During May and June, the stakeholder process advanced from conceptual
development to preparation of Tariff revisions necessary to implement the PAL/PALS
design framework. SPP also hosted question-and-answer sessions and multiple stakeholder
forums to discuss the proposal, gather additional feedback, and refine the draft revisions.
The PAL/PALS RR was posted for stakeholder review on July 9, 2026.
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SPP intends to continue its extensive outreach efforts through additional
stakeholder forums and educational presentations across numerous working groups,
including the MWG, RTWG, Supply Adequacy Working Group (“SAWG”), Transmission
Working Group (“TWG”), Economic Studies Working Group (“ESWG”), ORWG,
CAWG, RSC, and the Markets and Operations Policy Committee (“MOPC”). The proposal
is expected to advance through the formal stakeholder approval process from August
through November 2026, with individual working groups considering the revisions before
final votes by MOPC on October 13, 2026, and the RSC on November 16, 2026. Assuming
stakeholder approval, SPP intends to file the PAL/PALS proposal with the Commission on
or before November 16, 2026. This timeline reflects SPP's collaborative stakeholder
process, which is designed to provide multiple opportunities for education, technical
discussion, stakeholder input, and formal approval before being filed with the Commission.
VI.
ONGOING WORK OF THE REAL TEAM
In 2023, as mentioned above, the SPP Board established the REAL Team to assess
SPP’s current resource adequacy construct and anticipated challenges resulting from
resource mix changes, extreme weather impacts, increased demand, and evolving
consumer behaviors. REAL provides guidance, prioritization, and policy recommendations
needed to increase assurance that sufficient energy to meet load requirements can be
continuously and cost-effectively provided within the SPP Balancing Authority Areas
(“BAA”). The REAL Team consists of a diverse membership from various SPP
stakeholder groups, including the SPP Board, transmission owning members, transmission
using members, and state commission representatives.
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As seen on the REAL Teams work plan,63 the REAL Team will address a number of
Resource Adequacy issues in 2027, including Seasonal Resource Adequacy Construct, use
of non-firm imports in the development of the planning reserve margin, non-weather
related load uncertainty, and the use of coincident peak instead of non-coincident peak in
SPP’s resource adequacy requirements. Through this work, SPP is continuing its steadfast
commitment to ensuring that SPP continues to have sufficient resource capacity to meet
current and projected load growth in both SPP BAAs.
VII.
CONCLUSION
SPP continues to work with stakeholders to refine its planning, transmission,
market, operations, and resource adequacy frameworks as large load development
continues to evolve across the region. The initiatives described in this report reflect SPP's
coordinated approach to integrating large loads while preserving reliability, maintaining
resource adequacy, and protecting existing customers. SPP respectfully requests the
Commission accept this report as responsive to the Commission’s directive to submit an
informational report in the Show Cause Order.
Respectfully submitted,
/s/ Meredith Powell
Meredith Powell
Attorney
Southwest Power Pool, Inc.
201 Worthen Drive
Little Rock, AR 72223
mpowell@spp.org
63
REAL Team meeting materials on the June 17, 2026, item number 5:
https://www.spp.org/Documents/76913/REAL%20Meeting%2020260617.zipPDF page 28
28
Attorney for
Southwest Power Pool, Inc.
July 20, 2026
PDF page 29
CERTIFICATE OF SERVICE
I hereby certify that I have this day served the foregoing document upon each person
designated on the official service list compiled by the Secretary in this proceeding.
Dated at Little Rock, Arkansas, this 20th day of July, 2026.
/s/ Cassie Butler
Cassie Butler
Southwest Power Pool, Inc.
201 Worthen Drive
Little Rock, AR 72223-4936
(501)