Complex problems cause complex titles. Recent events in the Southwest Power Pool (SPP) and Midcontinent Independent System Operator (MISO) regions have exposed serious shortcomings in their reliability, transparency, and cost control—failures with real consequences for customers in Oklahoma, Arkansas, Texas, Louisiana, Mississippi, and the City of New Orleans.

In April 2025, emergency grid protection measures by SPP triggered outages affecting over 30,000 customers in the Shreveport region with no advance warning to the local utility (SWEPCO). Meanwhile, MISO was criticized for its operational failures, lack of accuracy of service and communication when MISO ordered widespread outages impacting more than 100,000 customers in Orleans, St. Tammany, Jefferson, Plaquemines, and St. Bernard Parishes. In both cases, regulators and local officials were left in the dark—literally and figuratively—prompting serious discussions about the need for, and options of, ending contractual relationships with these RTOs.

Systemic Failures and Rising Costs

A 2024 study from the National Bureau of Economic Research showed that transmission costs in RTO territories exceeded $2 billion in 2022 alone. Both SPP and MISO suffer from interconnection bottlenecks and poorly coordinated seams that limit generation integration. MISO’s projected 5 GW generation shortfall in 2022 was a red flag that it could not meet peak demand—placing customers at risk of blackouts.

These problems aren’t just technical—they’re structural. RTOs are increasingly unable to respond to regional needs with agility or accountability. Their governance models are diffuse. Their incentives are misaligned. And their costs continue to rise with little evidence of corresponding public benefit.

Accountability Gap and Executive Compensation

Executives at SPP and MISO continue to earn exorbitant salaries while presiding over these performance failures. In 2023, SPP’s CEO earned more than $1 million, with even higher compensation for MISO’s senior leadership. These salaries are funded by contracted utilities— and ultimately, by ratepayers—even as those customers face service disruptions and questionable ever spiraling transmission costs.

Before joining these, or any, RTOs, state utility commissions had authority to impose penalties on utilities for failure to perform, and ratepayers could be made whole through bill credits. Under the RTO model, these accountability mechanisms are neutered. The shift from state-regulated operations to multi-state contractual constructs have weakened, if not gutted, representative public oversight.

A Better Path: Expanding the Southeastern Energy Exchange Market (SEEM)

To the East exists a different, non RTO, model referred to as the Southeastern Energy Exchange Market (SEEM). The SEEM model offers a compelling alternative. With modest enhancements—especially the proposed addition of day-ahead market components —SEEM could deliver the similar savings of a SPP or MISO market, but at a fraction of the overhead and with more regional full state authority control.

SEEM transmission and market is governed by a committee of member utilities and emphasizes joint dispatch and voluntary bilateral trades. The costs are dramatically lower because it does not fund a separate “non profit” operating bureaucracy, opulent headquarters or lavish executive salaries with no accountability to ratepayers through commission oversight. Utilities are held accountable by state regulators, with penalties and rate credits available if performance falls short.

Importantly, SEEM currently includes utilities across 180 GW of rate-regulated load, from Florida to Missouri. It reflects the common values, climate conditions, and economic challenges of the Southeast—unlike the sprawling, impersonal governance of SPP and MISO.

Why SEEM Works for the South

• Lower Costs: Eliminates RTO overhead and redundant transmission charges.
• Local Accountability: Restores regulatory authority to state commissions.
• Better Planning: Focused infrastructure investment based on regional needs.
• Reliability: A shared commitment to reliability over market speculation or export schemes.

In contrast to MISO and SPP’s patchwork model and opaque operations, SEEM aligns with the principles of vertically integrated, state-regulated utilities that prioritize reliability, affordability, and public accountability.

The Arguments Against Leaving—And Why They Fail

Supporters of SPP and MISO claim the RTOs provide competition and diversity of supply. But recent blackouts, market volatility, and unnecessary high current and future transmission costs suggests otherwise. These systems are increasingly disconnected from the regions they serve—geographically, operationally and interactively.

Critics also argue the transition away from RTOs would be costly and/or complicated. But these same arguments were absent when states entered RTO agreements. The real complexity arises from the RTOs themselves, not the states. And long-term reliability and cost savings far outweigh any short-term legal or operational hurdles.

What Must Be Done

It’s not a question. Utilities must begin by notifying SPP and MISO of their intent to withdraw. These contracts typically require one year’s notice. State commissions and utility executives should coordinate to manage the legal and financial transition, ensuring customers are protected and that operations are uninterrupted.

A Call to Action

It is time for Oklahoma, Arkansas, Texas, Louisiana, Mississippi, and the City of New Orleans to reclaim control over their energy futures. Exiting SPP and MISO and transitioning to an improved SEEM model can deliver greater reliability, lower costs, and real accountability to customers and regulators.

State leaders, commissions, and utility executives must act now. Letters of intent to cancel RTO participation should be issued without delay, along with discussions with SEEM members This. will allow utilities and commissions to chart an improved, more resilient path forward.

By taking action, the South can become a national model of energy pragmatism: delivering power that is strong, accountable, affordable, reliable, and built for a dynamic future.

 

Commissioner Eric Skrmetta is currently fulfilling his 17th consecutive year of service as Public Service Commissioner for the State of Louisiana, presently as Vice Chairman of the commission. He serves as a board member of the Organization of MISO States, a board member and President of the Entergy Regional States Committee (ERSC) and Vice Chairman on the Board of Directors of the MISO Alternative Dispute Resolution Committee. He is a Member of the Board of Directors of the National Association of Regulatory Utility Commissioners (NARUC), serving as Co-Vice Chairman of the NARUC Subcommittee on Nuclear Energy, NARUC vice chairman pipeline safety subcommittee, NARUC National Gas Infrastructure Task Force Committee Member, NARUC Nuclear Energy Partnership NEP, NARUC Washington Action Committee Member, NARUC Taskforce for Emergency Preparedness Recovery and Resiliency Member, as well as past president of SEARUC. He is a Member of the New Mexico State University Center for Public Utilities Advisory Council. Commissioner Skrmetta holds a Bachelor of Science Degree, a Juris Doctorate, and LLM in Admiralty Law.