The R Street Institute and the World Resources Institute released a summary on Mar. 16 of an expert workshop held in Washington, D.C., where customers and consumer advocates discussed current challenges and potential solutions for the U.S. electric transmission system. The event, which took place at WRI offices on Dec. 20, 2024, brought together 18 participants for four hours of discussion, followed by a subsequent webinar in 2025.
The topic is important as utilities continue to spend large amounts on transmission infrastructure while consumers face rising costs and reliability concerns. Many new energy projects remain stalled due to interconnection delays, highlighting the need for better planning and regulatory reforms.
According to the summary, participants focused their discussions around four main areas: improving future investment through better planning, optimizing use of existing systems with advanced technologies, leveraging competition to improve efficiency, and enhancing governance and transparency. Attendees agreed that implementing Federal Energy Regulatory Commission (FERC) Order 1920 will be critical for ensuring efficient infrastructure buildouts that meet reliability needs at the lowest cost. They also supported reforms that would allocate costs based on causation and address concerns about rate hikes linked to state renewable portfolio standards.
Participants identified opportunities for generation interconnection reform and stressed the importance of accurate load forecasting in regional planning. Concerns were raised about a one-size-fits-all approach to interregional transfer capability requirements; instead, they favored region-specific assessments based on local needs.
On optimizing existing systems, attendees discussed advanced transmission technologies such as dynamic line rating (DLR) but noted that current requirements to merely study or consider these technologies are not enough to change utility incentives. There was general support for mandates requiring deployment of such technologies but also recognition of technical challenges involved in implementation.
Regarding competition, consumer advocates called for more competitive bidding processes and updated studies on cost savings from competition. Some expressed interest in hybrid merchant/regulated models used internationally as possible options for the U.S. market.
In terms of governance and transparency, participants highlighted problems with unilateral utility actions driving up costs without sufficient oversight or disclosure. Suggestions included adopting independent transmission monitors (ITMs), increasing economic review of projects, replicating California’s reporting model elsewhere, and reducing barriers for consumers challenging imprudent projects.
The summary concludes that while recent regulatory changes like FERC Order 1920 offer promise for consumers, ongoing concerns remain regarding right-of-first-refusal provisions and lack of effective oversight in some regions. Participants called for further reforms aimed at expanding technology mandates, increasing competition in project development, improving transparency measures such as ITMs or enhanced reporting requirements, and making it easier for consumers to challenge costly or unnecessary projects.
