Rising electricity demand, the need for a reliable grid, and new federal regulations are driving renewed interest in large-scale transmission projects. But as transmission investment grows, so do concerns about rising costs. Do these investments truly pay off for ratepayers?

This report provides a clear answer: yes — large-scale transmission projects deliver significant savings for American consumers and businesses.

Ratepayer Savings Exceed Costs

We analyzed seven regional and inter-regional transmission projects operating across the country — from California to Oklahoma — and found that each one delivered benefits exceeding their costs. These findings demonstrate that transmission investments pay for themselves over time, lowering electricity costs while strengthening grid reliability.

Transmission’s Unexpected Benefits

While transmission projects are typically designed to meet specific needs, their realized benefits extend well beyond their original purpose.

Projects designed for economic benefits outperformed planners’ expectations (green and blue projects in Exhibit ES2), expanding access to low-cost generation, improving resilience to extreme events, and helping states to meet public policy goals. Every studied non-reliability project significantly surpassed the Federal Energy Regulatory Commission’s (FERC’s) 1.25 benefit-to-cost ratio standard. Additionally, the three projects with pre-existing benefit-cost analyses (BCAs) exceeded the anticipated benefit-to-cost ratios (white dash) in their original plans.

Meanwhile, large-scale reliability-driven projects delivered unintended economic benefits beyond keeping the lights on (gray projects in Exhibit ES2). Though not required to meet FERC’s 1.25 benefit-to-cost standard, the studied reliability projects still approached or exceeded the threshold, proving their financial value while maintaining grid safety and functionality.

Smart Investments for the Future

Our findings confirm that large-scale transmission projects are cost-effective long-term investments that will continue to deliver savings for decades to come. Regulators and planners can move forward with confidence, knowing that transmission not only meets today’s energy challenges but also provides lasting value for American consumers and businesses — all while strengthening the grid.

Download the Appendix here.