SPP Wins FERC Approval for Priority Review Process Allowing 20% Generator Expansion
The Southwest Power Pool (SPP) secured a major regulatory win last week as the Federal Energy Regulatory Commission approved a new priority review process that allows utility operators to temporarily expand generating capacity by up to 20%. The change could directly impact utilities and independent operators in Oklahoma, one of the 14 states within SPP’s regional footprint.
SPP Cites Rising Demand and Accelerating Retirements
Utility Dive reported that the decision came as part of a three-part order tied to SPP’s filing seeking faster pathways for new power supplies. In its submission to FERC, SPP warned that it is “on the brink of a resource adequacy crisis,” pointing to two converging pressures:
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Electricity demand is climbing.
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Power plant retirements are accelerating.
SPP told regulators it needs more tools that will allow the grid to stay balanced as extreme weather, data center growth, and electrification contribute to demand peaks.
FERC Approves Temporary 20% Expansion Path
The new process allows eligible generators to request a temporary capacity increase of up to 20%, provided the projects are considered “shovel-ready.” According to FERC’s order, these expansions will receive accelerated interconnection studies and prioritized review, shortening a process that normally takes years.
Utility Dive noted that grid operators nationwide are making similar moves as the U.S. faces a wave of new load growth. FERC commissioners acknowledged the urgency, pointing out that interconnection queues have become one of the biggest bottlenecks in adding new generation.
Impact for Oklahoma Utilities
Oklahoma utilities—including OG&E, PSO, municipal systems, and co-ops—could take advantage of the priority pathway if they have:
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Existing plants already capable of expansion
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Engineering studies showing feasibility
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Timelines aligning with SPP’s temporary program window
Such projects could receive approvals faster than ever before—potentially positioning Oklahoma operators to add capacity ahead of the state’s own rising demand.
Grid Operators Seeking Faster On-Ramps
According to Utility Dive, SPP’s move is part of a broader national trend. Grid operators from the Midwest to the West Coast are exploring fast-track mechanisms as electricity demand forecasts rise far faster than anticipated even a few years ago.
SPP said the priority review process is meant to be a stopgap, giving operators a path to add near-term supply while larger transmission and generation projects continue through traditional queues.
Next Steps Following FERC Approval
With the order now approved:
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SPP can begin offering the accelerated pathway immediately
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Eligible projects can request priority studies
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Utilities can pursue near-term expansions while long-term resources advance
SPP told regulators the new approach is essential to bridging the gap between immediate supply needs and long-term infrastructure timelines.
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