Southwest Power Pool 2024: Value and Benefits Overview
Discover how Southwest Power Pool contributed $3.9 billion in savings to members in 2024. Explore the breakdown of savings in operations, markets, transmission, and services. Learn about the historical value and a 21:1 return on investment ratio.
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Presentation Transcript
2024 MEMBER VALUE STATEMENT Working together to responsibly and economically keep the lights on today and in the future. SPPorg southwest-power-pool 1 SouthwestPowerPool
2024 MEMBER VALUE In 2024, Southwest Power Pool provided $3.9 billion in savings and benefits to our members. 2
$3.9 BILLION 2024 SAVINGS AND BENEFITS Operations and Reliability: $835.6 million SPP operates from a regional perspective. This reduces costs and required energy reserves and increases efficiency. Markets: $2.500 billion SPP s Integrated Marketplace combines efficient and economic day-ahead, real-time and transmission markets. Transmission: $552.4 million SPP s collaborative, stakeholder-driven transmission planning processes result in robust infrastructure and have rapidly and reliably integrated renewables. Tariff, Scheduling and Services: $42.9 million SPP s industry-leading services and training meet the compliance, settlements, engineering, tariff and scheduling needs of our customers on a regional scale. 3
A HISTORY OF VALUE $4470 M $3.90 B $3.79 B $3.62 B $43 M $3970 M $38 M $43 M $552 M $441 M $3470 M $447 M $2.70 B $2970 M $38 M $2.24 B $2.14 B $377 M $2470 M $37 M $1.78 B $38 M $2304 M $1.71 B $2500 M $2250 M No MVS calculated in 2019 as SPP conducted a methodology improvement $1970 M $30 M $30 M $768 M $985 M $1423 M $1470 M $651 M $683 M $970 M $744 M $728 M $592 M $546 M $1026 M $470 M $905 M $879 M $836 M $604 M $525 M $509 M $477 M -$30 M 2016 2017 2018 2019 2020 2021 2022 2023 2024 Operations & Reliability Markets Transmission Professional Services FERC Fees 4
21:1 RETURN ON INVESTMENT $2.500 billion 21 TO 1 BENEFIT-TO-COST RATIO $1053.5 million $905.2 million -$187.3 million $42.9 million -$552.4 million -$26.1 million Net Revenue Requirement Tariff, Scheduling & Services Operations & Reliability Markets Transmission (Benefits & Savings) 2023 ATRR for 2015-2019 projects FERC* & Scheduling Fees COSTS BENEFITS ($3.787 billion) Transmission (Revenue Requirement) 5 *FERC fees estimated. To be updated. Note: Chart is for illustrative purposes and not to exact scale
INDIVIDUALIZING VALUE $ 17 Net Unique Costs & Benefits Benefits Related to Load Share Markets Wind Integ. VOT Capacity FERC Fees RSG Benefit Services Benefits Reliability Tariff, Sched. Prof. Services Member subtracts: Their org s Sched. 1A Their org s ATRR Member uses a table of values to identify savings from RSG in their control zone Member adds: Their net benefit from market participation, transmission rights, hedging and policy facilitation. Range of benefits: Low: Total / 115 High: LRS * Total Member multiplies total by their load ratio share of MWh 6
