DMEA Joins Southwest Power Pool to Strategically Manage Long-Term Energy Costs
Delta-Montrose Electric Association (DMEA) joined the Southwest Power Pool (SPP) on April 1, alongside several other utilities and energy providers, as part of a broader expansion of the regional transmission organization.
By joining the SPP, DMEA becomes part of a regional transmission organization (RTO). An RTO helps manage the flow of electricity across a large, multi-state grid. It works by matching electricity supply with demand in real time and selecting the most efficient power sources. Being part of SPP gives DMEA access to a broader network of energy resources, helping ensure open, fair access to transmission for utilities and energy providers. This strategic step also improves electric reliability and reduces the risk of outages—especially during extreme weather or high-demand periods.
“Joining SPP is an investment in the future reliability and resilience of our system,” said Jack Johnston, CEO of DMEA. “Access to a wider pool of resources helps ensure we can continue to meet our members’ needs. This is another important tool in our toolbox for achieving long-term cost stability.”
SPP coordinates electricity across a multi-state footprint, helping utilities balance supply and demand more efficiently. For DMEA, participation will provide long-term cost benefits by dispatching the lowest-cost available resources across the region.
DMEA emphasized that while the move offers long-term benefits, it also comes with costs. Participation in SPP includes meeting larger regional resource adequacy requirements, which ensure sufficient, reliable generation is available to serve members during peak demand and extreme conditions. These requirements will increase costs in the near term.
“As with any major decision, there are trade-offs,” Johnston said. “We recognize there may be near-term cost impacts, particularly as we meet new reliability and resource requirements, but over time, members can expect peace of mind during widespread storms or extreme demand and access to a broader mix of energy resources. We are confident that joining SPP positions DMEA to better manage those investments and deliver long-term value.”
DMEA will remain locally governed by its member-elected board. Additionally, DMEA will continue its partnership with Guzman Energy, which remains the cooperative’s primary wholesale power supplier. While Guzman provides the electricity, SPP helps coordinate how that electricity—and power from other sources—moves across the grid in real time.
For more information about SPP, please visit spp.org.
