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FERC approves SPP expansion of RTO construct into Western interconnect

Federal Energy Regulatory Commission (FERC) Press Availability · March 20, 2025

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Summary

FERC said it approved expansion of the Southwest Power Pool (SPP) RTO construct into the Western interconnect, characterizing participants as largely co‑ops and Western Area Power Administration divisions rather than state‑regulated utilities. The commission said it will follow up on remanded environmental‑justice analyses in unrelated LNG cases.

FERC announced that it approved expansion of the Southwest Power Pool’s regional transmission organization construct into the Western interconnect, a move the chairman described as a cut‑and‑paste of SPP’s existing governance into new geography. The commission previously approved SPP’s Markets Plus day‑ahead market in January and on this day authorized a broader structural expansion that, according to the chairman, currently involves mostly cooperatives and Western Area Power Administration divisions rather than state‑regulated investor‑owned utilities.

In response to a reporter’s question, the chairman said the commission does not seek to compel any Western utility to join an RTO; participation is voluntary and up to the utilities. He framed the action as letting the utilities choose whether to join the RTO and said FERC’s role is to approve the structure when participants present a proposal that meets statutory and regulatory requirements.

The chairman also noted a separate legal development affecting other infrastructure projects: the D.C. Circuit undone the vacatur of two LNG certificates and remanded certain matters to the commission for supplemental environmental‑justice analysis. He said the court left the certificates intact and instructed FERC to determine what remedial work, if any, is required on remand.

The commission did not provide vote tallies in the press exchange; reporters asked follow‑ups about the order’s practical implications and which utilities might join in future. The chairman said the expansion’s immediate participants were primarily co‑ops and federal marketing administrations, and that state‑regulated utilities could join later if they choose.

The commission said it will publish the order and any required filings; reporters were referred to FERC staff for further procedural details and timing for compliance filings or implementation steps.