Winter Reliability Forecast Shows Adequate Resources for 2025-2026 Season

In November 2025, the North American Electric Reliability Corporation (NERC) released its 2025/2026 Winter Reliability Assessment. In that report, Southwest Power Pool (SPP)—our regional transmission operator (RTO)—projects to have sufficient generation capacity to meet expected demand under normal winter conditions.

While many RTOs across the country face elevated reliability risks this winter, our region is not among them. That’s encouraging news and a reflection of the extensive work happening behind the scenes to strengthen grid reliability and ensure the wholesale power supply NIPCO sources and transmits to our seven electric cooperative Class A Members remains dependable.

What Is a Regional Transmission Organization (RTO)?

Electric utilities nationwide are members of one of nine regional transmission organizations (RTOs) and independent system operators (ISOs), also called power pools. These entities are federally regulated by FERC (Federal Energy Regulatory Commission) and work on a regional scale to coordinate, control, and monitor supply and demand on the electric grid. RTOs do not own the power grid, but they serve as “air-traffic controllers” of the grid to ensure reliable power supplies, adequate transmission infrastructure, and “day-ahead” coordination of wholesale electricity prices on behalf of their members. Northwest Iowa Power Cooperative (NIPCO) became an SPP member in October 2015 as a transmission owner (TO).

As a TO in SPP, NIPCO’s transmission facilities are part of an integrated system that carries electricity across the SPP footprint, spanning 14 states in the nation’s midsection.

While SPP does not list reliability as a high-risk factor for the upcoming winter season, our industry continues to navigate significant long-term challenges in maintaining a resilient and reliable electric grid.

The changing energy landscape presents both opportunities and challenges. While the SPP region has made substantial progress in bolstering its transmission infrastructure and adding renewable energy resources such as wind and solar, the variable nature of these resources requires careful planning to maintain reliability. A key factor contributing to improved stability is SPP’s new Planning Reserve Margin policy.

What Is a Planning Reserve Margin (PRM)?

SPP and NIPCO must be ready for times when electricity demand is unusually high. To ensure reliability, we rely on reserve margins—extra generating capacity that can be used if demand unexpectedly spikes. NIPCO buys power from Basin Electric Power Cooperative and Western Area Power Cooperative (WAPA), both of which set aside a portion of their generation as reserves for peak periods. However, across the country and within SPP, these reserve margins are getting smaller. As reserves shrink, there is less protection against unexpected outages or emergencies, which increases the risk of forced power interruptions. SPP’s new PRM Policy requires Basin Electric and WAPA to increase their PRMs to have more generating capacity online, thereby necessitating new generation development.

Maintaining reliability requires a diverse mix of generation resources. Dispatchable resources—coal, natural gas, and hydro—remain essential when renewable output drops.

Proactive Steps to Ensure Reliability

NIPCO, its Class A Members, its power providers, and industry partners are taking decisive action to maintain grid reliability for our members through several key initiatives:

• Advocating for Reliability and Affordability: Electric cooperatives across the country are owned by the members we serve. NIPCO works with other electric cooperatives to educate lawmakers and advocate for reliable, competitively priced power.

• Resource Diversification: Nationally, there is increasing reliance on renewable energy sources, and at the same time, we’re seeing fossil fuel plants taken offline, often ahead of schedule. Additionally, we’re seeing more pressure on the electric grid due to ever-present severe weather events and demand growth, as we begin to electrify more sectors of our economy through electric vehicles, data storage, and cryptocurrency mining. NIPCO believes and advocates for an all-of-the-above energy approach. The “all-of-the-above” approach promotes the idea that the United States relies on a reliable and sustainable fuel supply. There is great value in maintaining a diverse mix of fuel sources–fossil fuels, hydro, and renewables- to ensure reliability and resiliency and meet the growing demand for electricity.

• Grid Infrastructure: NIPCO and its member cooperatives pool resources and expertise to invest in technology, security, and infrastructure to deliver reliable and cost-effective power. Our operations are dedicated to strengthening our electric transmission infrastructure through targeted upgrades and new construction projects, which will enhance regional connectivity and resilience.

• Emergency Preparedness: We work closely with SPP and neighboring utilities to protect the NIPCO family of cooperatives from potential energy shortages and price spikes associated with having to purchase more power when demand is elevated. Through honed, time-tested, and strategic load management strategies and detailed response plans in place, we can take steps to reduce electricity demand during critical periods – helping avoid the need to purchase expensive power from the market when prices are at their highest.

• Regional Coordination: We actively participate in SPP’s reliability initiatives and maintain close coordination with neighboring utilities to support regional grid stability. By preparing for and responding to energy shortfalls, we can follow protocols to reduce electric demand and avoid purchasing excess energy from the markets or interrupting the power supply.

  
  

NIPCO works closely with SPP and other regional partners to address these long-term challenges while maintaining reliable and affordable electric service for our member-consumers. As we dedicate ourselves to powering western Iowa homes and communities throughout the winter season, know we are committed to doing everything we can to maintain trust and find solutions to keep power reliable and your rates stable.