SPP makes policy changes to prepare for data centers and big industrial electricity users

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In a move to stay ahead of unexpected large users of electricity making power demands on the grid in Oklahoma and other states, the Southwest Power Pool has adopted a process to facilitate the connection of large users of electricity.

The board of directors of the SPP, a 14-state power grid, said the process will not only review the connection of the large users but also continue to support energy needs for the entire region.

“We’re striving to stay ahead of the game,” said Casey Cathey, SPP vice president for engineering. “Large loads want answers now. They are motivated to invest and are looking for opportunities to connect to the grid now.”

Large users such as proposed new data centers and big industrial manufacturers in Oklahoma are expected to create heavy demands on the grid when they eventually become active in the state. A new data center is under construction in Stillwater while two new centers are proposed in Chickasha and Yukon.

SPP’s High Impact Large Load (HILL) policy followed months of collaboration among stakeholders and SPP staff to address the challenge of connecting customers with significant demand, such as AI-driven data centers or manufacturing, while balancing essential goals of reliability and affordability.

The solutions incorporate transmission service, generation and load interconnection and other pertinent reliability studies into a single framework that enables timely, informed decision making and action.

SPP will establish a 90-day study-and-approval process for interconnecting large loads that will be paired with new generation (either on-site or nearby) or for interconnecting large loads with current or planned generation. Load interconnections will be accelerated through integrated design, study, registration and operations.

SPP is committed to ensuring the grid remains reliable and the system’s integrity remains intact should these loads be connected. The HILL process enables early detection of system constraints, improves coordination across entities and prepares operators for real-time impacts.

For developers, market efficiency and transparency are key benefits. It supports faster market entry, enhances price signals and allows these loads and supporting generation to have more confidence in expected costs and timelines.

”I’m very pleased we’ve adopted a policy that addresses an urgent need and opportunity in the SPP region,” said board member Stuart Solomon. “I appreciate SPP’s quick work to develop an innovative proposal and our members’ and Regional State Committee’s active participation in refining it. This is a great example of our stakeholder process at its best, and I’m confident we now have an excellent approach to meeting the needs of our members and large-load customers looking to locate in the SPP region.”

Source: SPP release