Annual U.S.
Transmission Investments 1996-2023
Annual Transmission Investment $25+ billion in annual U.S.
as Reported to FERC by Region
EEI 2024 transmission investments, but:
Annual Transmission Investment ($Billions)
$30
More than 90% of it justified solely
CAISO based on reliability needs without
$25
ISO-NE benefit-cost analysis
MISO – About 50% solely based on “local”
$20 utility criteria (without going through
NYISO
regional planning processes)
$15 Does not include transmission investments – The rest justified by regional reliability
of non-jurisdictional entities (e.g., BPA, TVA, PJM
WAPA, …) and generation interconnection needs
$10 SPP
While significant experience with
ERCOT transmission benefit-cost analyses
$5 Southeast
exists, very few projects are justified
based on economics to yield overall
Other
Other WECC cost savings
$0
FERC Order 1920 may change that
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
Sources: The Brattle Group analysis of FERC Form 1 Data; EEI "Historical and Projected Transmission Investment" report. brattle.com
2023 Transmission Investments by Driver
All of these drivers are reliability focused
Source: FERC Staff Report: 2023 State of the Markets (March 21, 2024), Figure 15 (based on C3 Group data)
brattle.com
Much of the U.S. Continues to Rely on Siloed, Reliability-focused
Transmission Planning Processes
These solely reliability-driven
processes account for > 90% of all
transmission investments
• None involve any assessments of economic
benefits (i.e., cost savings offered by the
new transmission)
Proactive Incremental generation
multi-value interconnection has become the
planning (as primary tool (and efficiency barrier)
required by to support public policy goals
FERC Order Planning for economic & public-policy needs results in
1920) can less than 10% of all U.S. transmission investments
achieve more
cost-effective Interregional planning processes are largely ineffective
• Essentially no major interregional transmission projects have
planning been planned and built in the last decade
outcomes • Numerous national studies show that more interregional
transmission is needed to reduce total system costs
brattle.com
Brattle Group Publications on Transmission
DeLosa, Pfeifenberger, Joskow, Regulation of Access, Pricing, and Planning of High Voltage Transmission in the US, MIT-CEEPR working paper, March 7, 2024.
Pfeifenberger, How Resources Can Be Added More Quickly and Effectively to PJM’s Grid, OPSI Annual Meeting, October 17, 2023.
Pfeifenberger, Bay, et al., The Need for Intertie Optimization: Reducing Customer Costs, Improving Grid Resilience, and Encourage Interregional Transmission, October 2023.
Pfeifenberger, Plet, et al., The Operational and Market Benefits of HVDC to System Operators, for GridLab, ACORE, Clean Grid Alliance, Grid United, Pattern Energy, and Allete, September 2023.
Pfeifenberger, DeLosa, et al., The Benefit and Urgency of Planned Offshore Transmission, for ACORE, ACP, CATF, GridLab, and NRDC, January 24, 2023.
Brattle and ICC Staff, Illinois Renewable Energy Access Plan: Enabling an Equitable, Reliable, and Affordable Transition to 100% Clean Electricity for Illinois, December 2022.
Pfeifenberger et al., New Jersey State Agreement Approach for Offshore Wind Transmission: Evaluation Report, October 26, 2022.
Pfeifenberger, DeLosa III, Transmission Planning for a Changing Generation Mix, OPSI 2022 Annual Meeting, October 18, 2022.
Pfeifenberger, Promoting Efficient Investment in Offshore Wind Transmission, DOE-BOEM Atlantic Offshore Wind Transmission Economics & Policy Workshop, August 16, 2022.
Pfeifenberger, Generation Interconnection and Transmission Planning, ESIG Joint Generation Interconnection Workshop, August 9, 2022.
Pfeifenberger and DeLosa, Proactive, Scenario-Based, Multi-Value Transmission Planning, Presented at PJM Long-Term Transmission Planning Workshop, June 7, 2022.
Pfeifenberger, Planning for Generation Interconnection, Presented at ESIG Special Topic Webinar: Interconnection Study Criteria, May 31, 2022.
RENEW Northeast, A Transmission Blueprint for New England, Prepared with Borea and The Brattle Group, May 25, 2022.
Pfeifenberger, New York State and Regional Transmission Planning for Offshore Wind Generation, NYSERDA Offshore Wind Webinar, March 30, 2022.
Pfeifenberger, The Benefits of Interregional Transmission: Grid Planning for the 21st Century, US DOE National Transmission Planning Study Webinar, March 15, 2022.
Pfeifenberger, 21st Century Transmission Planning: Benefits Quantification and Cost Allocation, for NARUC members of the Joint Federal-State Task Force on Electric Transmission, January 19, 2022.
Pfeifenberger, Spokas, Hagerty, Tsoukalis, A Roadmap to Improved Interregional Transmission Planning, November 30, 2021.
Pfeifenberger, Tsoukalis, Newell, “The Benefit and Cost of Preserving the Option to Create a Meshed Offshore Grid for New York,” Prepared for NYSERDA with Siemens and Hatch, November 9, 2022.
Pfeifenberger, Transmission–The Great Enabler: Recognizing Multiple Benefits in Transmission Planning, ESIG, October 28, 2021.
Pfeifenberger et al., Transmission Planning for the 21st Century: Proven Practices that Increase Value and Reduce Costs, Brattle-Grid Strategies, October 2021.
Pfeifenberger et al., Initial Report on the New York Power Grid Study, prepared for NYPSC, January 19, 2021.
Van Horn, Pfeifenberger, Ruiz, “The Value of Diversifying Uncertain Renewable Generation through the Transmission System,” BU-ISE, October 14, 2020.
Pfeifenberger, Newell, Graf and Spokas, “Offshore Wind Transmission: An Analysis of Options for New York”, prepared for Anbaric, August 2020.
Pfeifenberger, Newell, and Graf, “Offshore Transmission in New England: The Benefits of a Better-Planned Grid,” prepared for Anbaric, May 2020.
Tsuchida and Ruiz, “Innovation in Transmission Operation with Advanced Technologies,” T&D World, December 19, 2019.
Pfeifenberger, “Cost Savings Offered by Competition in Electric Transmission,” Power Markets Today Webinar, December 11, 2019.
Chang, Pfeifenberger, Sheilendranath, Hagerty, Levin, and Jiang, “Cost Savings Offered by Competition in Electric Transmission: Experience to Date and the Potential for Additional Customer Value,”
April 2019 and “Response to Concentric Energy Advisors’ Report on Competitive Transmission,” August 2019.
Ruiz, “Transmission Topology Optimization: Application in Operations, Markets, and Planning Decision Making,” May 2019.
Chang, Pfeifenberger, “Well-Planned Electric Transmission Saves Customer Costs: Improved Transmission Planning is Key to the Transition to a Carbon-Constrained Future,” WIRES&Brattle, June 2016.
Newell et al. “Benefit-Cost Analysis of Proposed New York AC Transmission Upgrades,” on behalf of NYISO and DPS Staff, September 15, 2015.
Pfeifenberger, Chang, and Sheilendranath, “Toward More Effective Transmission Planning: Addressing the Costs and Risks of an Insufficiently Flexible Electricity Grid,” WIRES and Brattle, April 2015.
Chang, Pfeifenberger, Hagerty, “The Benefits of Electric Transmission: Identifying and Analyzing the Value of Investments,” on behalf of WIRES, July 2013.
Chang, Pfeifenberger, Newell, Tsuchida, Hagerty, “Recommendations for Enhancing ERCOT’s Long-Term Transmission Planning Process,” October 2013.
Pfeifenberger and Hou, “Seams Cost Allocation: A Flexible Framework to Support Interregional Transmission Planning,” on behalf of SPP, April 2012.
Pfeifenberger, Hou, "Employment and Economic Benefits of Transmission Infrastructure Investment in the U.S. and Canada," on behalf of WIRES, May 2011. brattle.com
