On March 13, 2026, the Federal Energy Regulatory Commission (FERC) issued an order unanimously approving Southwest Power Pool, Inc.’s (SPP) Consolidated Planning Process (CPP), effective March 1, 2026, subject to condition. The CPP is a new and first-of-its-kind framework that combines and streamlines the processes for regional transmission planning and generator interconnection, which will enable SPP to plan and develop the regional transmission system more efficiently and cost-effectively to address present and future grid challenges, including interconnecting new generation, serving massively growing demand, promoting grid resiliency, and maintaining reliable and economic service to all customers. FERC approved this landmark proposal, finding that the CPP will “allow SPP to more proactively and holistically identify transmission facilities that address the needs of both load and interconnection customers, provide greater upfront cost certainty to interconnection customers, and reduce interconnection study timelines.”
Individual Commissioners wrote separately to laud the proposal. Commissioner Rosner hailed the CPP as “one of the most innovative, common-sense proposals presented to FERC since the inception of open access transmission service” and exactly “the innovation that America needs to facilitate cost-effective transmission buildout and generator interconnection, reduce costs, and enhance system reliability.” Commissioner Chang applauded SPP and its stakeholders “on taking a bold step to address the needs of its system” and encouraged “other regional transmission operators (RTOs) and independent system operators (ISOs) to explore comparable reforms.”
For many years, SPP, like other regional grid operators and utilities across the country, has been experiencing unprecedented load growth at a time when interconnecting new generation remains a challenge due to the sheer volume of requests in the interconnection queue straining the process. Traditionally, the needs of load and generator interconnection have been conducted under separate planning processes, consistent with FERC’s standard policies addressing regional planning and generator interconnection and prevailing practices across the country. The convergence of historic demand growth and lagging supply prompted SPP and its stakeholders to think outside the box to address this once-in-a-generation challenge and rethink traditional models. That effort culminated in the CPP—a revolutionary new process combining and streamlining SPP’s regional transmission planning and generator interconnection processes into a single planning process that will identify cost-effective regional transmission solutions to serve both growing load and future generation. In recognition of the mutual benefits of the resulting regional transmission facilities, load and generation will share the costs of new regional transmission facilities developed under the CPP construct.
Through the CPP, SPP will incorporate anticipated generator interconnection needs into its regional transmission planning at the outset of its planning cycle and identify in advance “Planned Interconnection Locations” that can accommodate significant generator interconnection using existing or planned transmission capacity. SPP will then calculate generators’ roughly commensurate share of the cost to construct transmission upgrades to enable their interconnection—i.e., the Generalized Rates for Interconnection Development Contribution (“GRID-C”) rate—which generator interconnection customers will know up-front before joining the interconnection queue, promoting greater cost certainty for such customers. GRID-C revenues will be credited to the bills of transmission customers who otherwise fund 100% of the costs of regional transmission facilities. Through these mechanisms, SPP will more comprehensively and robustly plan the grid of the future to serve both load and generator interconnection customers reliably and economically, with the costs allocated to generators and load on a basis “roughly commensurate” with the benefits they receive. CPP also promises to increase the speed of the generator interconnection process significantly through faster study timelines and heightened readiness requirements for generators, promoting speed to power across the region.
FERC found that the CPP was a just and reasonable alternative to traditional regional planning and interconnection methods. Specifically, FERC found that SPP’s novel approach to allocating the costs of transmission upgrades identified in the new streamlined planning process to interconnection customers—i.e., the GRID-C mechanism—allocates costs in a manner that is at least roughly commensurate with the estimated benefits. Commissioners David Rosner and Judy W. Chang submitted separate concurring opinions, highlighting different aspects of the CPP. Commissioner Rosner proclaimed the CPP as “more than an evolution, it’s a revolution.” As he explained, the CPP “mark[s] a major step forward for improved speed and efficiency in generator interconnection and transmission planning that promises to deliver the electrons our country so badly needs.” Commissioner Chang noted how the CPP specifically addresses two pressing nationwide issues: transmission upgrade cost uncertainties and affordability. Commissioner Chang encouraged other RTOs/ISOs “to explore similar reforms to break the pernicious cycles that undermine generation development and lead to inefficient transmission system buildout.”
FERC ordered SPP to submit a compliance filing within 30 days to address minor corrections and other clarifications.