FERC approves SPP’s large load connection proposal
The grid controlling electrical power in Oklahoma and 13 other states won approval from federal regulators for a plan to quickly handle expanded energy projects to meet the power demands of data centers and large industrial projects.
It will have an impact on Oklahoma’s electrical power industry where utilities have asked for approval from the Oklahoma Corporation Commission for projects to meet demands of potential customers seeking to use large amounts of electricity.
The Federal Energy Regulatory Commission (FERC) has signed off on an innovative proposal by Southwest Power Pool (SPP) to thoroughly and expeditiously review requests from potential customers seeking to use large amounts of electricity, according to the announcement by the grid.
SPP’s High Impact Large Load (HILL) proposal was approved by FERC on Wednesday. HILL is part of SPP’s solution to balance the increasing number of customer requests to connect large loads, such as AI-driven data centers or manufacturing projects, to the power grid while also continuing to support energy needs for the entire region.
“We’re proud SPP is the first in the nation to incorporate transmission, generation and load interconnection services into a single framework,” said SPP CEO Lanny Nickell. “It’s essential to our nation’s competitive future that we can quickly, reliably and affordably meet vastly increasing energy demands. We are now in a great position to enable this future.”
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.
SPP is committed to ensuring the grid remains reliable and the system’s integrity remains intact. The HILL process enables early detection of system constraints, improves coordination across entities and prepares operators for real-time impacts. For developers, HILL supports faster market entry and allows these loads and supporting generation to have more confidence in expected costs and timelines.
FERC’s approval is effective as of today. SPP is required to make a compliance filing within 30 days to address minor ministerial matters.
In a concurring opinion, FERC commissioner David Rosner wrote, “Today’s order is a productive step toward facilitating the energy needed to win the AI race, bring back American manufacturing, and deliver the reliable and affordable energy on which families and small businesses depend. I encourage other transmission providers to take note of the innovative approach SPP proposed in this filing, and to consider proposing similar solutions tailored to meet the needs within their own footprints.”
SPP recognizes that challenges associated with reliably serving large loads quickly while addressing consumer concerns will continue to evolve, and, as such, is continuing to craft additional responsive measures.
Oklahoma Corporation Commissioners recently approved on a split vote the expanded energy projects of Oklahoma Gas and Electric. The projects involve new gas turbines at the utility’s Horseshoe Lake power plant, battery storage facilities in the Black Kettle project near Enid and capacity agreements with other power plants. The utility contended it needed the expansion approval to meet growing demands of AI data centers and industrial projects.