U.S. FERC Approves SPP Topology Optimization Plan, Saving Up to $44 Million Annually

en.Wedoany.com Reported - The Federal Energy Regulatory Commission (FERC) on Wednesday approved a proposal by the Southwest Power Pool (SPP) to reduce grid congestion and associated costs through "topology optimization."

When SPP submitted the proposal to FERC on May 21, it stated that grid operators traditionally address grid congestion by redispatching power plants, a practice that can drive up generation and congestion costs. With grid-enhancing technologies, operators can alter power flow through topology reconfiguration to manage congestion at a lower cost. SPP operates all or parts of the grid across 17 states, from northern Texas to North Dakota.

In its filing, SPP proposed that under the program, market participants could submit reconfiguration proposals when power plants are offline or the grid is constrained, and grid operators could also propose reconfigurations on their own. SPP would analyze potential reconfigurations to determine whether the wholesale market as a whole benefits, and would assess the reliability impacts of reconfigurations on the grid before approving changes.

The grid operator stated that a joint study conducted by NewGrid, SPP, and the Brattle Group found that among the constraints analyzed, 75% could eliminate historical system operating limit violations, saving $18 million to $44 million annually in congestion costs.

In its filing, SPP also cited the Midcontinent Independent System Operator's (MISO) use of economic topology reconfiguration. MISO began using the technology in 2024, and according to a staff report submitted to the Reliability Subcommittee on August 18, MISO has saved $95 million through economic topology reconfiguration so far this year.

SPP's program was developed through its stakeholder process and is supported by filings from Advanced Energy United, the Working for Advanced Transmission Technologies Coalition, and a joint submission from Evergy, Enel North America, and EDF Power Solutions.

Evergy, Enel, and EDF noted that, according to SPP's market monitor's latest State of the Market report, SPP's congestion costs have averaged $1.6 billion annually over the past three years. The companies also stated that SPP curtailed an average of 1,382 megawatts of wind and solar resources throughout 2025, "which has increased costs to consumers and created reliability risks due to potential generation shortfalls."

"By opening or closing circuit breakers, reconfiguration can reliably reroute power flows around congestion and has already saved millions of dollars in congestion costs in MISO and SPP," the companies said in their filing. They added that SPP already uses topology reconfiguration to manage reliability issues.

In separate concurring opinions, FERC Commissioners Judy Chang and David Rosner urged other grid operators to adopt topology optimization as a means of better managing power flows, including under extreme weather conditions. Chang stated: "This is an example of advanced transmission technology that can easily help the U.S. power system quickly integrate more load and generation while lowering costs for all consumers."

SPP also noted that the Electric Reliability Council of Texas (ERCOT) will implement a topology optimization mechanism early next year.