SPP Regional State Committee

FERC’s 2004 Order recognized the need for a mechanism that facilitated regional consensus on critical issues related to transmission planning and operation. The RSC emerged as that mechanism, empowering state regulatory agencies to have a say in several key areas. These areas include:

• Financing Transmission Enhancements: The RSC plays a decisive role in determining how transmission system improvements will be funded. They have the authority to decide whether participant funding or a regional access charge system will be used.
• Financial Transmission Rights (FTR) Allocation: The RSC plays a critical role in how FTRs, which represent the right to use the transmission system, are allocated within the SPP region, particularly when locational pricing methodologies are employed.
• Transition for Existing Customers: The RSC ensures a smooth transition for existing firm transmission service customers by determining the mechanism used to grant them FTRs equivalent to their pre-existing rights.
• Resource Adequacy: The RSC plays a vital role in establishing a regional approach to ensuring the power grid has sufficient resources to meet electricity demand.
• Transmission Planning for Remote Resources: The RSC has the authority to decide whether transmission upgrades needed for integrating remote generation resources will be included in the regional planning process.
• Role of Transmission Owners: The RSC determines the level of involvement transmission owners have in proposing transmission upgrades within the SPP region.

FERC’s order emphasized that the RSC’s role was not to usurp state authority, but rather to act as a collaborative platform where state commissions could reach consensus on regional matters and work effectively with FERC on these issues.

The SPP Bylaws further solidified the RSC’s role and responsibilities. Membership in the RSC is open to all relevant state regulatory agencies and shall consist of one designated representative from one regulatory utility commission or board from each state where SPP operates as a Regional Transmission Organization (“RTO”). SPP is obligated to financially support the RSC’s activities and provide necessary information and analysis to assist the committee in its decision-making processes.

The RSC also established the Cost Allocation Working Group (“CAWG”) to provide technical expertise and support for the committee’s core areas of responsibility. This working group, comprised of staff members from each state regulatory commission represented in the RSC, ensures a collaborative and well-informed approach to addressing critical regional transmission issues.