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SPP's Western Expansion Set for Implementation on April 1

LCG, March 13, 2026--The Southwest Power Pool (SPP) announced yesterday that leaders from the participating organizations voted unanimously to proceed as planned with expanding its regional transmission organization (RTO) services into the Western Interconnection. SPP sees the decision to proceed as planned as a strong signal of confidence as SPP and its partner utilities prepare for this key milestone, which will occur overnight between March 31 and April 1.

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Entergy Estimates Customer Savings of $5B from "Fair Share Plus" Data Center Agreements

LCG, March 6, 2026--Entergy yesterday announced approximately $5 billion in total savings for 2.3 million customers in Arkansas, Louisiana and Mississippi resulting from data center customer agreements in those states. Entergy, which completed its first data center customer agreement in 2024, projects the customer savings over the next 20 years and after the regulatory approval or acknowledgement of the public service commissions in those states.

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Industry News

Outlook Questionable for LG&E's Participation in the Midwest ISO

LCG, December 29, 2004--Earlier this month LG&E Energy LLC notified the Midwest ISO (MISO) that its Louisville Gas and Electric Company and Kentucky Utilities subsidiaries plan to withdraw from the regional transmission organization (RTO). LG&E Energy conducted a cost-benefit analysis and estimates that its utilities would save over $65 million over the next five years by leaving the MISO, even after incorporating an exit fee of $23.8 million.

The Kentucky Public Service Commission (PSC) began an investigation earlier this year into the utilities joining the MISO, and a hearing is scheduled to begin after February 1, 2005. The costs to LG&E utilities for participating in the MISO, estimated to be $7 million for retail customers, can not be added to utility bills prior to PSC approval.

Estimating the costs and benefits related to establishing and operating regional transmission organizations is an on-going concern. In neighboring Virginia, state legislation required utilities, such as Virginia Power, to join an RTO, thus making cost-benefit analyses somewhat a moot issue. To support the development of RTOs, the Federal Energy Regulatory Commission (FERC) released a study in October designed to estimate the cost of developing a "Day One RTO" that meets the minimum requirements of the FERC's Order 2000. Given the unique nature of each of the limited number of existing RTOs, the FERC's review of actual cost data showed considerable cost differences between RTOs.

The MISO has been conducting training and testing for its new market structure, which includes locational marginal pricing (LMP), and the market is planned to open on March 1, 2005.

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The Locational Marginal Price Model (LMP) Network Power Model
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Day Ahead and Real Time Market Simulation
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