WSPP Inc. (originally named Western Systems Power Pool) began with
the November, 1983 distribution of a concept letter in which all members
of the Western Electric Coordinating Council (WECC) were invited to join
in the formation of a new electric power transaction "pool" with the
purpose of testing to see if broader pricing flexibility for
coordination and transmission services would promote increased
efficiency, competition and coordination. Following an extended period
of negotiation and development, the initial WSPP Agreement included 14
utility members across the western United States, including:
- Arizona Electric Power Cooperative, Inc.
- Arizona Public Service Company
- Bonneville Power Administration
- Dept. of Water Resources of the State of California
- El Paso Electric Company
- Northern California Power Agency
- Pacific Gas & Electric Company
- Pacific Power & Light Company
- Portland General Electric Company
- Public Service Company of New Mexico
- Sacramento Municipal Utility District
- Salt River Project
- San Diego Gas & Electric Company
- Southern California Edison Company
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The Agreement was filed with the Federal Energy Regulatory Commission
(FERC) in November of 1986 by Pacific Gas and Electric Company of behalf
of the charter members. In March of 1987, following FERC approval, WSPP
began operations as a two year, multi-state, bulk power marketing
experiment. Its initial purpose was to allow sales of power for
short-term transactions to take place with maximum flexibility and
minimal regulatory filings, and to test market efficiency and
competition. In April of 1989, FERC allowed for a one year extension of
the WSPP experiment to allow for additional data collection. At the end
of that extension, an independent consultant was hired to review the
collected data and assess the benefits of the experiment. FERC approved
continuation of the WSPP experimental phase following the initial one
year extension and while the collected data was analyzed, then, in
April, 1991 FERC approved the WSPP Agreement on a permanent basis.
In 2005, the Western Systems Power Pool changed its name to better
reflect its expanding footprint and the ever-evolving structure of the
electric utility industry. No longer just a "Western" entity, devoid of
any physical "System" and not performing in a traditional "Power Pool"
manner (focused on market functions as opposed to system security
functions), the organization became simply: WSPP, Inc.
The WSPP has proved to be extremely popular and beneficial to its
members. The WSPP has grown from it's original 14 member foundation to
over 350 current members with more being added each year.