Advocates Take FERC to Court Over Southwest Power Pool’s Pricey Proposal to Favor Fossil Fuels

Today, the Sierra Club and NRDC (Natural Resources Defense Council), represented by Earthjustice, filed a petition at the D.C. Circuit Court to challenge the Federal Energy Regulatory Commission’s approval of a proposal by the Southwest Power Pool that favors fossil fuels in the grid planning process.

SPP, which serves approximately 19 million residents across its 14-state footprint, proposed in February 2024, and modified in September 2024, a new way of evaluating electric generators to ensure grid reliability. The proposal holds renewable energy sources to a significantly higher standard than fossil fuels, and fails to account for fossil fuels’ poor reliability during extreme weather.

During Winter Storm Uri, frozen gas plants failed and caused massive power outages for millions of residents when families needed power most. The same almost happened in subsequent Winter Storms Elliot and Gerri when large segments of both the coal and gas fleets failed, but power outages were avoided because SPP’s wind fleet significantly outperformed its expected value. Studies also show that renewable energy is a cheaper fuel source and can help lower skyrocketing energy prices across the country.

The Sierra Club, Earthjustice, and NRDC challenged SPP’s capacity accreditation proposal at FERC in April 2024, and challenged the modified proposal in September 2024.

​​”It is critical for grid reliability that generation resources are accredited fairly and accurately for their ability to provide power when it is needed,” said Earthjustice Senior Attorney Aaron Stemplewicz. “However, here, FERC has allowed SPP to put their thumb on the scale to artificially entrench fossil fuel generators at the expense of clean, reliable, renewable energy. We look forward to exposing FERC’s misguided approval in court.”

“Fair and accurate resource evaluation should be the minimum expectation for any grid operator,” said Sierra Club Senior Attorney Greg Wannier. “Unfortunately, SPP decided instead to artificially prop up the value of coal and gas. This double standard will force customers to pay more money for less reliable electric service, and increases the risk of life-threatening power outages during the next heat wave or winter storm. FERC’s decision to overlook the shortcomings of SPP’s proposal rests on a legal technicality, which we look forward to correcting in court.”

“When grid operators misjudge which resources are dependable, utilities make the wrong investments. That leaves communities paying more for a system that is less prepared for the next winter freeze or summer heat wave,” said NRDC Senior Attorney for Climate and Energy Caroline Reiser. “Our goal is simple: make sure SPP uses an accurate accreditation methodology, so the region invests in the resources that are actually the most reliable and affordable.”