Analysis: SPP sees adequate summer reserve margin

OREANDA-NEWS. The Southwest Power Pool (SPP) expects to have a healthy reserve margin of 32pc this summer, more than double the requirement.

Summer demand in the eight-state, coal-reliant area is forecast to peak at 50,529MW while capacity will total 63,605MW, SPP regional entity officials said in a draft summer resource assessment.

The region's summer peak demand occurred on 2 August 2011, when power demand reached 54,949MW.

Load-serving members are required to maintain a 12pc capacity margin, which translates to a 13.6pc reserve margin.

SPP regional entity officials have seen no recent delays in coal deliveries to power plants. Wind integration remains a focus: as much as 1,868MW of new wind may connect to the southwest pool grid by the end of the summer, boosting nameplate wind capacity to 10,468MW.

For the summer, the region will count about 1,326MW, or 12.1pc, of existing wind as available during peak demand hours. Summer capacity also includes 2,157MW of available hydro and 33MW of solar.

The region expects to import 2,500MW and export slightly more than 1,000MW at peak conditions.

One major transmission line, the Iatan-Nashua 345kV, is expected to be energized in the Kansas City area over the summer.

SPP's assessment area covers all or parts of Arkansas, Kansas, Louisiana, Missouri, Nebraska, New Mexico, Oklahoma and Texas.

The southwest pool in June will begin handling reliability coordination for transmission belonging to the Western Area Power Administration's upper Great Plains region, Basin Electric Power Cooperative and Heartland Consumers Power District in eastern Montana and North and South Dakota. Their full membership in the SPP regional transmission organization will begin in October.

Peak summer 2015 assessments at the SPP North hub are \$28/MWh, a 26pc discount to the South hub.