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Transmission Reform Strategy from a Customer Perspective: Optimizing Net Benefits and Procedural Vehicles

Transmission Reform Strategy from a Customer Perspective: Optimizing Net Benefits and Procedural Vehicles

Full Title: Transmission Reform Strategy from a Customer Perspective: Optimizing Net Benefits and Procedural Vehicles
Author(s): Devin Hartman, Jennifer Chen
Publisher(s): R Street Institute
Publication Date: May 11, 2022
Full Text: Download Resource
Description (excerpt):

Cost-efficient electric transmission planning, development and operations are vital for grid reliability and economic development. Investor-owned utilities (IOUs) have access to ample capital and spend about $20-25 billion per year on transmission in the United States. However, billions of dollars are misallocated annually, which erodes net benefits to consumers and suppresses the development of cleaner and lower-cost energy generation. The problem rests squarely on a regulatory system that is outdated and structurally flawed.

Nevertheless, a rare opportunity to remedy regulatory flaws has emerged. After years of experience and building records on the shortcomings of its transmission policies, FERC recently opened multiple transmission reform proceedings. If done well, reforms could yield tens to hundreds of billions in customer savings and avoid billions of metric tons of emissions.

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