The Federal Energy Regulatory Commission (FERC) has directed the California Independent System Operator (CAISO) and Southwest Power Pool (SPP) to provide an update on their efforts to improve coordination where their transmission systems and electricity markets intersect.

In an order issued last week, FERC instructed the two regional grid operators to submit a joint report by Sept. 30, 2026, outlining progress on operational coordination along the seams between the CAISO and SPP markets, as well as coordination with neighboring balancing authorities.

The commission said the report should describe ongoing coordination initiatives, identify operational challenges created by evolving market structures in the West, and provide plans and timelines for resolving those issues. The filing should also identify areas where coordination efforts remain incomplete.

The directive comes as the Western electric grid continues to evolve through expanding regional market participation, increasing renewable energy integration, and changing transmission operations. As additional balancing authorities and utilities participate in broader regional markets, effective seams coordination has become increasingly important for maintaining reliability and improving market efficiency.

"Bringing CAISO and SPP together isn't just another procedural step; it's about making sure our grid operators are aligned, and operations remain coordinated across the region," FERC Chairman Laura V. Swett said in a statement. "When operators communicate clearly and coordinate well, communities and businesses across the West should realize great reliability and economic benefits."

FERC said the report should examine coordination both between the CAISO and SPP markets and between each market and neighboring balancing authorities. The commission also will accept public comments for 30 days after the report is filed, with comments limited to seams management and market coordination issues addressed in the filing.

The order reflects FERC's continued focus on improving coordination among regional transmission organizations and balancing authorities as the nation's power system becomes more interconnected and operationally complex.