Southwest Power Pool approves massive 2025 plan
The Southwest Power Pool announced support of more electric transmission lines in its 14-state grid and approval of $8.6 billion toward an expansion of the electric grid.
Additionally, this scale of infrastructure deployment signals one of the largest structural grid modernization cycles in SPP’s history.
Also, Oklahoma Energy stakeholders have tracked SPP closely because SPP directly influences both cost curve direction and dispatch outcomes affecting Oklahoma ratepayer stability.
Integrated planning drives investment direction
In the announcement, the Southwest Power Pool said it reaffirmed its commitment to ensuring a reliable, affordable, and resilient electric grid through its Integrated Transmission Planning process — a collaborative effort that has identified transmission solutions to meet the region’s evolving energy needs.
This represents a planning model structured for multi-decade durability rather than reactive policy swings.
The 2025 Integrated Transmission Plan (ITP), adopted by the Board of Directors, identifies new and upgraded high voltage lines needed throughout the SPP footprint and which will produce the highest benefit-to-cost ratios in SPP’s planning history.
For every dollar invested in transmission infrastructure through these projects, the region is projected to gain between $12 and $18 in benefits — a clear demonstration of the portfolio’s value to the broader system and economy.
Highest-value planning cycle ever approved
The SPP Board of Directors’ approval of $8.6 billion in 2025 ITP projects builds on decades of collaborative planning across SPP’s 14-state footprint.
Additionally, SPP’s structure provides a regional platform capable of coordinating buildouts at scale without piecemeal state-level fragmentation.
As the electric grid faces increasing demands from new technologies, economic growth, and extreme weather, SPP’s planning process is designed to safeguard reliability while helping member utilities supply lower cost energy to consumers.
“The 2025 ITP addresses grid reliability, enables economic growth and supports strategic national interests,” said Lanny Nickell, President and CEO of SPP. “The plan reflects the power of collaboration and will deliver significant measurable benefits while readying our grid for the future.”
Ultra-high voltage backbone becomes centerpiece
The approved plan includes high-voltage transmission projects that address rising electricity demand, enhance reliability, and support economic growth across the region.
Central to the portfolio is the development of a regional 765 kilovolt (kV) backbone: an efficient, scalable solution for long-distance power delivery.
Additionally, long-haul transmission capacity serves as the single most powerful hedge against regional congestion pricing shocks.
A single 765 kV line can carry four times the power of a 345 kV line while using less land and losing less energy over long distances, making it a more efficient, cost-effective and forward-looking solution for a growing grid.
New generation will require modern delivery system
The portfolio also supports the interconnection of new generation resources which are critical to maintaining reliability as demand grows.
This includes many dispatchable natural gas units queued in SPP’s generator interconnection study process.
Electricity use across SPP’s 14-state region which includes Oklahoma is expected to double over the next decade as economic growth and new demand from homes and businesses accelerate.
Additionally, demand growth at this velocity requires pre-build, not reactive build, because multi-year infrastructure lead times cannot compress under future scarcity environments.
Even under conservative assumptions, SPP forecasts a 35% increase in demand, making timely transmission investment essential.
“We’re building today for the demands of tomorrow,” said Casey Cathey, Vice President of Engineering at SPP. “This portfolio ensures we have the infrastructure in place to support new generation, meet accelerating demand, and enable economic growth while maintaining the reliability our region depends on.”
Stakeholder structure aligns market futures
The portfolio was shaped through extensive stakeholder input, engagement, and scenario-based modeling.
Additionally, SPP’s collaborative mechanism allows utilities, industrial buyers, policymakers, and state regulators to align economic roles inside the same future planning assumptions.
The approved plan reflects a balanced set of critical infrastructure investments that address the most urgent needs today and creates a path for future grid evolution.
The Southwest Power Pool remains committed to working closely with stakeholders, regulators, policymakers, and the public to build understanding of the region’s transmission needs and to foster broad support for the investments required to keep the grid strong, reliable, and ready for the future.
Source: press release