What distributed flexibility earns in SPP.
SPP has no capacity market. Each load-responsible entity meets net peak plus a 15 percent planning reserve margin. On April 1, 2026, SPP became the first RTO to run full services in both interconnections.
August 2026 · Texture · Practitioner reference for cooperatives and municipal utilities
15%
Planning reserve margin on net peak; no centralized capacity auction
30%
SPP cooperatives with at least one DER program (47 of 156)
Apr 2026
SPP West cutover; first RTO in both interconnections
About this report
After the April 2026 western expansion, SPP covers 17 states, 732,000 square miles, and about 20 million people. Record peak demand is about 56 GW in the eastern balancing authority area. Thirteen investor-owned utilities, 156 distribution cooperatives, and 271 municipal and public power systems serve retail customers. Wind is the top fuel source in most recent years, at about 34 GW installed, and the average day-ahead energy price was about $28 per MWh in 2024.
Key findings
How do SPP entities get paid for capacity with no auction?
SPP runs no centralized capacity auction. Each load-responsible entity meets a Resource Adequacy Requirement equal to its net peak demand plus a 15 percent planning reserve margin, met through owned generation and bilateral deals. A binding winter requirement arrived for the 2026–27 winter, and the winter margin rises sharply, reaching 36 percent for some entities. Capacity value is real, and it is captured by lowering an obligation rather than by clearing an auction.
What changed for cooperatives when SPP West went live?
SPP crossed into the Western Interconnection at midnight Central Daylight Time on April 1, 2026. Twenty-three organizations joined or expanded participation. Both SPP East and SPP West clear under the same Integrated Marketplace tariff, so a Tri-State member cooperative in Colorado reads the same rulebook as one in Kansas. Xcel's Public Service Company of Colorado stayed out, leaving roughly 2 million Xcel customers outside the market footprint.
Get the DER Value in SPP Report.
Frequently asked questions
How many SPP cooperatives run a DER program?
Cooperatives run 47 of 156, about 30 percent, a floor because three footprint co-ops carry no CommonGrid registry record. Those 47 cooperatives run 106 programs between them. Thermostats lead at 31 programs, then water heaters at 22 and irrigation at 18. Investor-owned utilities lead by share at 69 percent (9 of 13).
When does Order 2222 take effect in SPP?
FERC accepted SPP's Order No. 2222 compliance filing in 2026, and SPP has told the Commission the effective date will fall in the second quarter of 2030.
What is SPP West?
On April 1, 2026 SPP became the first regional transmission organization to provide full RTO services in both the Eastern and Western Interconnections. The footprint went from 14 states to 17. SPP runs one balancing authority containing two balancing authority areas, SPP East and SPP West, joined by three DC ties. The Western Energy Imbalance Service market terminated on the cutover.