Western transmission and DOE needs

It’s been a busy few weeks in transmission – at the close of June, 11 western states agreed to improve coordination and permitting for transmission across their shared footprint (much of the western grid outside of California is operated by a patchwork of utilities, unlike the northeast and midwest, where regional transmission organizations plan and operate the grid). The pact follows a study by the Western Transmission Expansion Coalition earlier this year, which identified more than 12,600 miles of new or upgraded transmission needed in the region over the next decade, a quarter of which are yet to be even planned for.

The DOE also released its most recent draft report on national transmission needs. It’s no surprise that high-voltage interregional and cross-interconnection links continue to be massively underbuilt, with consequences for both energy prices and grid reliability - for example, the study found transmission congestion costs reached $12 billion in 2024. The draft also highlights another geography where transmission is critical – DOE estimates that the southeast (another non-RTO zone) is missing out on about $10/MWh in congestion relief value – essentially, cheaper power can’t get to where it needs to go – as a result of underbuilt connections to neighboring regions.