DOE Authorizes SPP to Run Backup Generators, Including at Data Centers, During Heat Wave

The U.S. Department of Energy issued an emergency order for the Southwest Power Pool on July 26, authorizing the regional grid operator to take unusual steps to keep electricity flowing across its 17-state footprint during prolonged heat. Most notably, the order allows SPP not only to dispatch specified power plants, but also, as a last resort, to call on backup generation at data centers and other large industrial and commercial sites.

The order, Emergency Order No. 202-26-37, took effect July 26 and is set to expire at 11:59 p.m. CDT on Aug. 3. DOE issued it at SPP’s request after a series of reliability warnings. The agency cited Conservative Operations Advisories in SPP’s West balancing authority area beginning July 19, Resource Advisories in the East balancing authority area on July 18 and July 24, and an Energy Emergency Alert Level 2 in the West area on July 24. DOE said an emergency exists in SPP’s West and East balancing authority areas, which together cover SPP’s multistate system.

The order, issued under Section 202(c) of the Federal Power Act and Section 301(b) of the DOE Organization Act, directs SPP to dispatch specified generating units named in an attached exhibit, but “only as needed to maintain reliability.” It also gives SPP authority, before declaring the more severe EEA3 alert or during an EEA3, to require operation of backup generation resources at data centers, including hyperscaler facilities, and at other large customer sites. DOE’s order said SPP had asked for authority to “unlock and deploy backup generation resources” at those facilities, potentially widening the pool of emergency power available to the grid.

DOE said the emergency conditions were driven by a combination of seasonally hot temperatures, high electricity demand, lower expected wind and solar output near peak hours, and the possibility of generator outages or disruptions to imported power. The department said those factors created a risk that available supplies would not be enough to meet demand while maintaining reliable service.

The order adds several limits and reporting requirements. SPP must notify DOE daily about which specified resources and backup generation resources were designated and operated under the order. Operations must be limited to the hours and parameters SPP determines are necessary for reliability. The order also says emissions or fuel burned during the emergency period will not count toward certain rolling-average emissions limits, while requiring operations to comply with environmental law “to the maximum extent practicable.”

In a July 26 press release, Energy Secretary Chris Wright said, “The Trump Administration is tapping into an abundant supply of unused backup generation to maintain affordable, reliable, and secure power for hardworking American families and businesses.” The department had already intervened earlier in the same heat event through Order No. 202-26-36, which was effective July 20-21, making this the second DOE emergency order involving SPP in less than a week.

SPP, headquartered in Little Rock, Arkansas, is a regional transmission organization that oversees a large swath of the central U.S. grid, serving members in all or part of 17 states from the northern Plains to the Gulf Coast. Section 202(c) of the Federal Power Act allows the energy secretary, during an electric emergency, to order generation or transmission steps needed to maintain service. This latest order does not amount to a broad blackout declaration, but it does show the federal government moving aggressively to shore up reliability as the heat strain continued.