WSPP - Overview

Overview

Highlights

WSPP Inc. is an organization of electric wholesale market entities that have developed and utilize a standardized
power agreement (WSPP Agreement) to execute trading opportunities, allowing WSPP members to manage
power delivery and price risk.
Through the use of stanardized contract terms, the WSPP Agreement facilitates transactions to occur
without constant renegotiations of contract terms, thereby promoting liquidity in the market.
The WSPP Agreement is the most commonly used standardized power sales contract in the electric industry. It is approved by the FERC and used by jurisdictional and non-jurisdictional entities alike.
Once membership in the organization is achieved, the Agreement allows immediate access to power trading within the membership.
The WSPP Agreement has been copyrighted and is for the exclusive use of WSPP Member companies.
WSPP's FERC approved tariff provides a catalyst for an efficient and robust wholesale electric power
market at market based rates.
The WSPP Agreement is open to power sellers and customers, though it provides for wholesale, and not retail, sales.
Currently, there are more than 275 WSPP members.
The WSPP membership has devoted much time and resources to updating of the WSPP Agreement to ensure that its terms represent the state-of-the-art terms for power sales contracts. The current version was the result of a consensus reached by a diverse group of power sellers and consumers, including most of the major players in the industry.
The WSPP operates through its various committees. Each member company has one vote on each committee through its designated representatives.
In addition to traditional power transactions of energy and capacity, the WSPP Agreement Service Schedules provide for operating reserve, imbalance, and renewable energy transactions.
The WSPP Agreement allows for flexibility should the parties to a transaction wish to mutually agree to modify the standardized terms.

Organizational Structure

Executive Committee – the EC decides whether to adopt OC recommendations. EC consensus is required, with a 90 percent voting requirement necessary for any changes to the Agreement. Each member of WSPP is represented on the EC, and is considered a board member as defined by law. EC officers include a Chair, Vice Chair, Treasurer and Secretary .		Operating Committee – the OC evaluates contract changes in the first instance. It also establishes operating procedures and procedures for evaluating membership applications. OC recommendations are then forwarded to the EC for consideration. OC officers include a Chair, Vice Chair, and Secretary.

Contract Sub-Committee – the Contract Sub-Committee was created by the OC and is tasked with entertaining, evaluating and codifying proposed changes to the WSPP Agreement.		Administrative Committee – the Administrative Committee is a Sub-Committee of the EC and is made up of the Officers of the EC (Chair, Vice-Chair, Treasurer, Secretary) and the Officers of the OC (Chair, Vice-Chair, Secretary). The Administrative Committee administers the affairs of the WSPP as the EC may direct or approve, including, for example: budgeting, auditing, contract administration, financial management, and legal management.
Audit Committee – The duty of the audit committee is to annually review the financial condition and financial systems employed by the organization to ensure compliance.


		Operating Agent – appointed by the EC, the Operating Agent performs functions and duties in accordance with the WSPP Agreement and, as the EC or Administrative Committee may direct. Such duties typically include acting as central contact for members/associate members, coordinating the organization's budgeting functions, recruiting new members and sponsorships, and handling various other administrative functions.