The Southwest Power Pool (SPP) is the oldest North American Reliability Organization still in operation. SPP's story began in the early days of WWII, when America was furiously ramping up production of weapons and military supplies. After entering the War, the USA had an immediate and crucial need to produce aluminum for aircraft manufacture. Alcoa and Reynolds Metals Company established themselves in Arkansas which had the largest commercially exploitable Bauxite deposit at that time. Additionally, in 1941, a government agency called Defense Plant Corporation opened a plant in Jones Mill, Arkansas with the intent of operating 24/7 to supply the war effort. The government leased the plant to Alcoa for operations. The Jones Mill Plant alone required 120,000KW of electrical power to operate and this exceeded the entire generation of the state (100,000KW PEAK excluding outages). Due to the war effort, there was not enough man power nor raw materials to build further electrical generation. Executives of power utilities in the Southwest decided to pool their generation resources together to ensure reliability and dependability for this region of the US during the wartime. The existence of Southwest Power Pool was out of necessity and scarcity. After the war, the Executives saw the expertise and efficiency that was created and decided to remain as a Power Pool.
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Southwest Power Pool was formed on December 14, 1941 with eleven regional utilities entering into an Inter-Company Agreement. The eleven companies were: Arkansas Power & Light (a subsidiary of Entergy), Louisiana Power & Light (a subsidiary of Entergy), Mississippi Power & Light, Southwestern Gas and Electric, Public Service Company of Oklahoma, Nebraska Power, Texas Power & Light, Southern Light and Power, Oklahoma Gas and Electric, Kansas Gas and Electric, and Empire District Electric.
SPP was incorporated as a nonprofit corporation in 1994, and was approved as a Regional Transmission Organization (RTO) by the Federal Energy Regulatory Commission (FERC) in 2004[1]. SPP is one of nine regional electric reliability councils under North American Electric Reliability Corporation (NERC) authority. NERC and the regional reliability councils were formed following the Northeast Blackout of 1965. SPP's mission statement is "Helping our members work together to keep the lights on...today and in the future." SPP competes directly with MISO.
The SPP region lies within the Eastern Interconnection, in the central Southern United States, serving all of the States of Kansas and Oklahoma, and portions of New Mexico, Texas, Arkansas, Louisiana, Missouri and Nebraska. SPP members include investor-owned utilities, municipal systems, generation and transmission cooperatives, state authorities, independent power producers, and power marketers. SPP has many of the high voltage direct current (DC) ties which connect the Eastern interconnection to the Western Interconnection and both of the DC ties to the ERCOT Texas Interconnection.