City council decision could save costs on electricity

Independence Power & Light should have access to lower cost electricity through an agreement with the Southwest Power Pool.

The city council will consider the agreement at its Jan. 6 city council meeting.

The city council's summary explanation says new arrangement will allow IP&L "to match supply and demand at the lowest total production costs" from SPP utility members in the nine-state the regional utility pool.

The new agreement will allow IP&L to buy and sell energy on a day-ahead basis as well as on a real-time basis beginning in March 2014 through the SPP Integrated Marketplace.

Click on image to learn more about Southwest Power Pool Integrated Market

Click on image to learn more about Southwest Power Pool Integrated Market

SPP is a Regional Transmission Organization, mandated by the Federal Energy Regulatory Commission to ensure reliable supplies of power, adequate transmission infrastructure, and competitive wholesale prices of electricity.

SPP has 74 members including 11 municipal-owned utilities. Its service area includes over 15.5 million residents with members in nine states.


SPP implemented an energy market in 2007 offering members a central, regional clearinghouse where member utilities can buy and sell power offering the opportunity to obtain electrical power at lower costs.

This approach, the SPP says, allows member utilities to take advantage of the region's diverse generating resources including coal, natural gas, hydro, wind and nuclear.