NEW YORK (Reuters) - Energy regulators on Thursday approved the Southwest Power Pool to expand its territory and become the first regional U.S. grid to operate in both the western and eastern interconnections of the country's electrical system, SPP said.

WHY IT'S IMPORTANT

SPP is one of seven regional transmission operators that manage the physical flow of electricity and the markets that facilitate that movement, and those RTOs sometimes compete with each other for territory and members.

SPP, which runs the bulk electric grid and wholesale power market across 14 western and Midwest states, will expand its reach to encompass all or parts of 17 states under the agreement unanimously signed off on by the U.S. Federal Energy Regulatory Commission, SPP said in a statement.

CONTEXT

Seven power providers that currently intersect with the SPP market on a limited basis will get the ability to participate in the broader market, transmission planning and other grid services beginning in April 2026.

Those potential new members include Basin Electric Power Cooperative, Colorado Springs Utilities, Deseret Power Electric Cooperative, the Municipal Energy Agency of Nebraska (MEAN); Platte River Power Authority, Tri-State Generation and Transmission Association, and the Western Area Power Administration Colorado River Storage Project, Rocky Mountain and Upper Great Plains regions. 

KEY QUOTE

"With the complexities of today's energy industry and the regulations that define it, an adaptable electric grid with access to both local and regional resources is essential for managing customer costs and maintaining service reliability," Colorado Springs Utilities Chief Executive Officer Travas Deal said in a statement.

"We strongly believe the SPP RTO will help us achieve this goal."