#United States #Washington #ITC Holdings #Grid Acceleration #Federal Energy Commission

Grid Acceleration Coalition Urges Prompt Action on Transmission Rules

In a significant move to enhance America's energy infrastructure, the Grid Acceleration Coalition has reiterated its call for the Federal Energy Regulatory Commission (FERC) to promptly revise federal solicitation requirements. The coalition emphasizes that current processes in the Midcontinent System Operator (MISO) and the Southwest Power Pool (SPP) are hindering the development of crucial transmission infrastructure. This delay is adversely affecting customer costs and undermining the country’s ability to support economic growth and essential industries.

The Need for Urgency

In comments submitted to FERC, the coalition highlighted the overwhelming support from various sectors, including hyperscalers, organized labor, local economic development organizations, and industry leaders. They all advocate for a more efficient and accountable approach to constructing essential transmission infrastructure. Purvi Patel, Vice President of Regulatory Strategy at ITC Holdings Corp. and spokesperson for the coalition, stated: "The record demonstrates strong backing from diverse groups for enabling local electric companies to enhance grid infrastructure. The urgency of the situation is escalating, yet some still defend the existing slow processes."

Supporters of the coalition argue that allowing local companies to build transmission will accelerate project completion and improve customer experiences. Even opponents of the coalition’s proposals have not meaningfully challenged the data showcasing the current system's embedded costs and obstacles. Patel underlined that “federal solicitation rules are causing delays in the transmission backbone needed to connect customers and maintain America’s competitiveness on a global scale.”

Breakdown of Opposition Arguments

Responding to arguments from those wanting to maintain the status quo regarding solicitation requirements, the coalition outlined key points of contention. They insisted that the opposing parties' cost-saving theories were based on projected bid prices rather than actual final costs. Patel noted that this approach resembles a “shell game,” highlighting how often winning bids fall below the anticipated baselines yet final expenses can soar. Additionally, any discussion about savings must address the significant time lost—estimated at 16 to 20 months—spent merely selecting a developer. Such lengthy lead times exacerbate the main issue of project delays.

Addressing Flawed Reporting

The coalition also criticized a report from the R Street Institute, which advocates for maintaining existing federal solicitation requirements. Their critique focused on the study’s narrow data sample that lacked credibility in supporting broad claims about transmission development speeds. For instance, R Street's analysis of MISO projects leaned on a single competitive project's completion, and the SPP analysis involved just four near-completed competitive projects compared to thirteen incumbent projects.

Furthermore, the coalition pointed out that R Street’s comparisons of project completion times utilized inconsistent baselines, misleadingly suggesting that competitively solicited projects were being completed faster than they are in reality. By correcting these inconsistencies, it becomes evident that directly assigned projects outperform their competitively solicited counterparts when it comes to speed of delivery.

Growing Electricity Demand

As the coalition has anticipated, the urgency for improving grid capacity has intensified with rising energy demands from AI and data centers. Both public and private sector analyses indicate a surge in electricity needs, where grid interconnectivity and transmission capabilities could soon emerge as limiting factors. Utilities are currently under immense pressure to serve large loads while ensuring affordability for existing customers. Hence, the implications of FERC’s decisions on these matters hold considerable weight.

Every month characterized by constraints in the current solicitation process is a loss in crucial time that could be used for building the necessary transmission capacity to connect new loads, relieve congestion, and enhance reliability within the power grid.

About ITC Holdings Corp.

ITC Holdings Corp. stands as the largest independent electricity transmission company in the United States, focusing on delivering grid solutions that improve reliability. With a portfolio consisting of high-voltage transmission networks across various states, ITC plays a critical role in ensuring energy access and cost-effectiveness. ITC’s commitment to innovation and improvement solidifies its stature in the energy sector as it helps pave the way for a robust future in electricity transmission.

For more information, visit www.itc-holdings.com.