The Transmission Possible Newsletter |
| |
|
Welcome to the February edition of the Transmission Possible Newsletter! Dive into this month's issue, packed with the latest breakthroughs in transmission planning, regional updates, and FERC-related news. |
As 2026 begins, transmission policy is moving from rulemaking into implementation. Regional operators are advancing compliance with Order 1920, Congress is revisiting permitting frameworks, and some states are evaluating advanced transmission technologies (ATTs) within their transmission planning processes. At the same time, the rapid growth of new large loads and evolving demand forecasts are reshaping discussions on cost allocation, reliability, and affordability across federal and regional venues.
This month, we highlight regulatory and legislative developments shaping early 2026 — from FERC litigation and federal–state collaboration to Western planning outlooks and state modernization efforts. As regional compliance filings move forward, interconnection requests for large loads increase, and multi-year transmission portfolios take shape, we will continue tracking how policies translate into projects, how costs are allocated, and how regional coordination evolves.
Thank you for following along as we monitor the venues where transmission decisions are being made. — The Transmission Possible Team |
|
|
FERC Outlines 2026 Priorities
On January 14, FERC Commissioner Mark Rosner issued a public statement, Energized for 2026, outlining the Commission's priorities for 2026. The statement identifies Order 1920 implementation, interregional coordination, generator interconnection reform, and large-load integration as central areas of focus. It also references the use of advanced transmission technologies, including dynamic line ratings and automation, to support reliability amid increasing demand. Additionally, the statement emphasizes implementation and coordination across regional planning processes.
|
|
|
Order 1920 Litigation and Compliance
On January 5, FERC filed its appellate brief defending Order 1920 in the U.S. Court of Appeals for the Fourth Circuit, signaling the next phase in the legal challenge to the Commission's regional transmission planning reforms. In the 298-page filing, FERC argued that it has clear authority under the Federal Power Act to require long-term, forward-looking transmission planning and cost allocation for multi-state projects. While litigation proceeds, regional grid operators continue implementation efforts under Order 1920. PJM submitted its initial compliance filing in December, and additional regional filings are expected throughout 2026 under FERC's staggered schedule.
|
|
|
FREEDOM Act Introduced to Establish Permitting Timelines
On February 12, Senator Martin Heinrich (D-NM) introduced the Facilitating Reliable Energy, Environmental, and Domestic Ownership for Manufacturing (FREEDOM) Act, legislation aimed at establishing clearer timelines for federal energy project permitting. The bill would create enforceable deadlines for agency review, establish judicial review timelines, and protect fully permitted projects from subsequent regulatory reversals. The proposal focuses on providing greater predictability in federal permitting processes for energy infrastructure, including transmission. The legislation has been referred to the Senate Committee on Energy and Natural Resources and has not yet received a hearing.
|
|
|
Rail and Highway Transmission Planning Act Introduced in the House
On February 5, Representative Mullin (D-CA) introduced the Rail and Highway Transmission Planning Act, which directs the U.S. Department of Energy (DOE) to identify and analyze opportunities for siting high-voltage transmission within existing transportation rights-of-way, including highways and rail corridors. The bill would require DOE to evaluate existing transmission located in transportation corridors, identify best practices, assess which corridors are most suitable for transmission based on potential cost and time savings, and analyze how corridor use could enhance reliability and affordability. The legislation also calls for the development of an interagency action plan and guidance for federal, state, local, and private stakeholders to support coordinated implementation. The legislation has been referred to the House Committee on Energy and Commerce. No hearings have been scheduled to date.
|
|
|
Federal–State Collaborative Addresses Affordability and Load Growth
On February 11, FERC and the National Association of Regulatory Utility Commissioners (NARUC) held their fourth Federal–State Current Issues Collaborative meeting (Docket No. AD24-7-000) in Washington, D.C. The session focused on electricity affordability amid rapid load growth, including demand associated with data centers and artificial intelligence, and the transmission expansion required to support it. Participants discussed load-forecasting practices, cost-allocation considerations, and approaches to managing rate impacts while maintaining planning timelines. The meeting featured remarks from state regulatory leaders, including Iowa Utilities Commission Chair Sarah Martz, and continued the series of federal–state coordination efforts following the prior Joint Federal-State Task Force on Transmission.
|
|
|
FERC Approves Southwest Power Pools Large Load Study Framework
On January 14, FERC approved SPP's proposal to establish a structured study process for High Impact Large Loads (HILLs), including large data centers and associated generation. The new framework establishes clearer timelines and coordination requirements for evaluating large-load additions and related infrastructure needs. As demand forecasts continue to evolve, regional operators are refining processes to manage large-load interconnection and cost allocation considerations. Read more here.
|
|
|
Power for the People Act Introduced
On January 15, Senator Chris Van Hollen (D-MD) introduced the Power for the People Act, legislation addressing cost allocation associated with large data center development. The bill directs states to evaluate new rate classes for large-load customers and instructs FERC to ensure data centers pay for the local transmission upgrades they trigger. It also encourages data centers to bring new generation and storage resources online and adopt flexible demand practices. As load growth accelerates nationwide, the bill signals growing scrutiny over how transmission and infrastructure costs are allocated between new large-load customers and existing ratepayers. For more information, read the press release here.
|
|
|
FERC Approves SPP Cost Allocation Changes
On December 30, FERC approved SPP's proposed revisions to its highway/byway transmission cost allocation methodology, introducing subregional cost-sharing for certain mid-voltage projects. Under the updated framework, projects between 100–300 kV will allocate a greater share of costs to specific subregions, while higher-voltage projects will continue to be broadly regionalized. The decision clarifies how future transmission investments will be funded across the SPP footprint and may influence ongoing cost allocation discussions in other regions.
|
|
|
RTO & Regional Planning Watch |
|
|
WestTEC Releases 10-Year Western Transmission Outlook
In February, the Western Transmission Expansion Coalition (WestTEC) released its 10-Year Transmission Outlook, estimating that more than 12,600 miles of new high-voltage transmission may be required across the Western Interconnection by 2035, representing approximately $60 billion in investment. The study identifies 73 major projects currently planned or under development, totaling roughly 10 GW of additional seam transfer capability between regions. WestTEC forecasts approximately 35% growth in electricity demand and 71% growth in generation capacity over the next decade, reflecting both load growth and resource turnover across the region. The report, the first of its kind in the West, is the culmination of two years of work by a broad range of regional stakeholders and represents a potential turning point for transmission development in the region.
|
|
| PJM Advances $11.6B Transmission Package and 2026 Planning Timeline
In January, PJM Interconnection presented its proposed $11.6 billion 2025 Regional Transmission Expansion Plan (RTEP) portfolio, with Board approval expected in the first quarter of 2026. PJM also outlined its 2026 planning cycle timeline, including competitive proposal windows anticipated this summer and a targeted approval package early next year. At the same time, transmission owners separately reported continued growth in supplemental (local) project proposals, particularly in areas experiencing significant data center demand. Together, these filings signal the importance of aligning regional and local planning processes, as transmission investments and demand for large-loads increase.
|
|
|
Consumer Advocate Challenges Major PJM Transmission Project
On January 21, the Pennsylvania Consumer Advocate sent a letter urging PJM's Board not to approve a proposed 221-mile, 765 kV transmission line—known as Project 237—estimated to cost nearly $2 billion. The project was selected to address reliability needs and accommodate projected data center demand. The filing argues that approval is premature, given evolving load forecasts and alternative solutions that could utilize existing rights-of-way. The challenge reflects broader debates over transmission scale, cost allocation, and whether faster-to-deploy or in-state alternatives should be prioritized before approving larger projects.
|
|
|
MISO Selects Developers for Tranche 2.1 Projects
In January, the Midcontinent Independent System Operator (MISO) selected developers for two major Long-Range Transmission Plan (LRTP) Tranche 2.1 projects, totaling approximately $1.5 billion in planned regional transmission investment. The portfolio includes a $1.2 billion, 765 kV project spanning multiple states and a $350 million, 345 kV project in Wisconsin, both designed to enhance reliability and expand transfer capacity. Developer selection advances Tranche 2.1 toward construction and reinforces the scale and long-term vision embedded in MISO's regional planning framework.
|
|
|
NERC Warns of Intensifying Resource Adequacy Risks
On January 29, the North American Electric Reliability Corporation (NERC) released its 2025 Long-Term Reliability Assessment, warning of growing resource adequacy risks across multiple regions over the next decade. The report highlights accelerating load growth, generator retirements, and transmission development timelines as key pressure points on system reliability. NERC recommends streamlining system expansion, coordinating electric and natural gas planning, and conducting more robust adequacy assessments. As demand projections continue to rise, the assessment reinforces the urgency of proactive transmission planning and timely grid investment.
|
|
|
SPP Advances Consolidated Planning Process
In January, SPP continued its transition to a new Consolidated Planning Process (CPP), which integrates transmission planning and generator interconnection studies into a unified, multi-year framework. The approach aims to identify system needs earlier in the planning cycle by evaluating load and generation growth together, rather than sequentially. SPP also recently revised elements of its cost allocation methodology, introducing subregional treatment for certain mid-voltage projects. These changes adjust how costs are distributed across the footprint while maintaining regional allocation for higher-voltage facilities.
|
|
|
Illinois Supreme Court Reinstates Grain Belt Express Permit
On January 25, the Illinois Supreme Court reinstated the state permit for the Grain Belt Express transmission project, reversing a lower court decision that had blocked the line. The 800-mile, multi-state HVDC project is designed to deliver up to 5 GW of renewable energy across the Midwest and into PJM markets. The ruling removes a significant barrier for one of the largest proposed interregional transmission projects currently under development. As a multi-state line spanning SPP, MISO, and PJM markets, Grain Belt Express also has implications for interregional coordination under FERC Order 1920's long-term planning reforms.
|
|
|
Nevada Approves SWIP-North Transmission Project
On January 26, Nevada regulators approved the SWIP-North transmission project, a 285-mile, 500-kV line that will extend the Southwest Intertie Project corridor between Idaho and Nevada. Idaho regulators had given their own approval last December. The project is expected to enter service by 2028, strengthening regional reliability and market integration and expanding transfer capability across the Western Interconnection.
|
|
|
Winter Storm Fern Highlights Congestion Patterns
Beginning January 23, Winter Storm Fern brought extreme cold and snow across the Eastern United States, contributing to outages and significant wholesale price volatility. While overall system reliability was maintained, transmission congestion influenced regional price differences and curtailment patterns, particularly across PJM and MISO seams. The event illustrated how interregional transfer limits and localized constraints affect system performance during extreme weather conditions.
|
|
|
State Transmission Updates |
|
|
California Utilities Publish SB 1006 ATTs Studies
On December 31, two of California's investor-owned utilities, San Diego Gas & Electric and Southern California Edison, published studies on ATTs, as required by SB 1006 (SDG&E study; SCE study). The studies evaluate tools such as dynamic line ratings, advanced conductors, topology optimization, and power flow control technologies across specific corridors, assessing their potential to increase grid capacity, reduce congestion, and defer or complement traditional transmission upgrades, and providing system-level analysis intended to inform both utility planning and CAISO's transmission planning process. As regulators and lawmakers alike continue to focus on affordability, California's implementation of SB 1006 is creating a structured mechanism to assess opportunities for transmission optimization.
|
|
|
Maryland Executive Order Establishes Transmission Modernization Working Group
On December 19, Maryland Governor Wes Moore issued an Executive Order establishing a transmission modernization working group focused on affordability and reliability. The order directs the group to develop policy recommendations on grid-enhancing technologies and broader transmission modernization efforts, and to coordinate with the Maryland Public Service Commission on implementation pathways. The Executive Order is expected to formalize a state-level review of transmission modernization strategies within Maryland’s broader energy policy agenda.
|
|
|
Illinois Integrates ATTs into State Planning
On December 18, the Illinois Commerce Commission released its latest draft of the Renewable Energy Access Plan (REAP), incorporating an expanded evaluation of advanced transmission technologies. Subsequent legislation (HB 4093) signed into law requires additional ATT components to be incorporated into the final REAP by mid-2026. By embedding transmission optimization directly into statewide planning requirements, Illinois is reinforcing the role of ATTs as a core strategy for expanding capacity, reducing congestion, and supporting clean energy deployment.
|
|
|
Texans for Affordable Transmission Launches Competitive Transmission Effort
On February 9, Conservative Texans for Energy Innovation announced the launch of Texans for Affordable Transmission (TAT), an education and advocacy initiative focused on advancing competitive transmission policy in Texas. The group is discussing projected transmission investment in ERCOT, which could exceed $40 billion over the next decade. TAT states that it will advocate for competitive bidding frameworks for new transmission projects, citing cost containment and transparency considerations.
|
|
|
Colorado HB 1081 — Colorado Grid Optimization Act Status: Introduced
On February 3, Colorado lawmakers introduced the Colorado Grid Optimization Act (HB 1081), legislation designed to improve energy affordability and reliability by accelerating the deployment of ATTs in the state. The bill would require utilities to evaluate and incorporate grid-enhancing technologies—such as dynamic line ratings and power flow controllers—and advanced conductors into long-term transmission planning processes. By prioritizing cost-effective upgrades where feasible, the legislation aims to unlock near-term capacity, reduce congestion, mitigate wildfire risk, and contain ratepayer costs.
|
|
|
Illinois
SB2789 — High Voltage Transmission Line Siting Status: Introduced
SB2789 would amend the Illinois Public Utilities Act and Illinois Highway Code to establish a structured priority framework for siting new high-voltage transmission facilities. The bill directs that new transmission lines be located, to the greatest extent feasible, within existing corridors, following a specified order of preference: (1) existing utility corridors; (2) highway and railroad corridors; (3) recreational trails (if underground and environmentally compatible); and (4) new utility corridors. This legislation aims to establish a formal process for co-locating high-voltage transmission lines within the Illinois Department of Transportation's highway rights-of-way. Additionally, it requires coordination between utilities and the Department of Transportation, establishing review timelines, and providing clarity on permitting, including advance notice requirements if relocation is later required.
|
|
|
Maryland
HB40 and SB201 — Public Utilities – Transmission Lines – Advanced Transmission Technologies Status: Introduced
Companion legislation, HB40 and SB201, would update Maryland public utility law to incorporate advanced transmission technologies (ATTs) into transmission siting and planning requirements. The bills expand the definition of a qualified generator-led line to include grid-enhancing technologies, high-performance conductors, and energy storage used as transmission. Applicants seeking a certificate of public convenience and necessity (CPCN) for new overhead transmission lines would be required to submit detailed alternatives analyses, including evaluation of ATTs, route selection, costs, and stakeholder engagement. The Public Service Commission would be required to consider whether feasible alternatives have been evaluated before taking final action. Beginning December 1, 2026, transmission owners would also be required to submit recurring reports identifying congestion, associated ratepayer costs, feasible alternatives — including ATT deployment — and potential implementation pathways.
HB 723 — Securing Affordable, Valuable Investments in Next-Generation Grid Solutions (SAVINGS) Act Status: Introduced
The SAVINGS Act (HB 723) aims to strengthen cost-effectiveness requirements for utility grid investments, including both distribution and transmission-related expenditures. The bill directs utilities to evaluate and deploy lower-cost alternatives — including demand flexibility, grid-enhancing technologies, and non-wires solutions — before pursuing traditional infrastructure upgrades. The legislation aims to increase transparency around projected ratepayer impacts and requires enhanced analysis of system needs and alternatives in utility filings. By expanding formal alternative review requirements, the bill seeks to ensure that proposed grid investments reflect least-cost, reliability-focused outcomes.
|
|
|
New Jersey
A5898 — Advanced Transmission Technologies Study Status: Introduced
This bill directs the New Jersey Board of Public Utilities (Board) to conduct a one-time study on advanced transmission technologies (ATTs), including grid-enhancing technologies such as dynamic line ratings, advanced reconductoring, power flow control, and topology optimization. The study must evaluate the costs, benefits, and deployment potential of ATTs to support safe, reliable, and cost-effective electric service. The bill requires a congestion assessment identifying locations with persistent or expected congestion, estimating customer cost impacts, and evaluating whether ATTs could cost-effectively increase capacity, reduce congestion and renewable curtailment, improve reliability and resiliency, support new clean generation, and lower capacity costs. The Board must also assess cost and timeline savings compared to traditional transmission, review policies in other deregulated states, and examine utility–customer co-investment pathways. The Board must hold at least two public meetings and publish a report within one year, after which the bill expires.
|
|
|
Virginia
HB 114 — State Corporation Commission; Electric Utility Infrastructure Report Status: Passed One Chamber
This bill directs the State Corporation Commission (SCC) to analyze existing electric utility infrastructure and identify cost-effective alternatives or supplements to new greenfield transmission projects that would maintain or improve system reliability. The analysis must consider options such as grid-enhancing technologies, high-performance conductors, and upgrades to existing generation assets. The SCC is also tasked with evaluating whether voluntary regulatory pathways exist — or could be created — to allow large load customers to directly finance these alternatives in exchange for faster interconnection. Findings are due to the General Assembly by July 1, 2027.
HB 84 — Electric Utilities; Regional Transmission Entity Voting Transparency Status: Passed One Chamber
This bill establishes new transparency requirements for electric utilities and licensed suppliers that participate in regional transmission organizations (RTOs). Covered entities would be required to file an annual report with the State Corporation Commission detailing votes cast in RTO proceedings, explaining how those votes served the public interest, and describing related actions on grid reliability, interconnection, and demand response. The Commission would be authorized to request additional information in relevant regulatory proceedings.
|
|
|
Washington
HB1673 — Improving Reliability and Capacity of the Electric Transmission System Status: Introduced
This bill establishes the Washington Electric Transmission Authority within the Department of Commerce to lead long-term, statewide transmission planning and development. The Authority would conduct a 20-year transmission needs assessment and develop a regularly updated roadmap identifying priority corridors, grid-enhancing technologies, advanced reconductoring, non-wires alternatives, and distributed energy solutions. A nine-member advisory board representing utilities, ratepayers, tribal interests, labor, and clean energy stakeholders would guide strategy and coordination. The Authority would also have development and bonding authority, and could act as a builder or operator of last resort. The bill further provides State Environmental Policy Act (SEPA) exemptions for grid-enhancing technologies within existing rights-of-way and directs regulators to approve enhanced rates of return—up to 2%—for qualifying ATT investments.
SB5466 — Improving Reliability and Capacity of the Electric Transmission System Status: Passed One Chamber
SB5466 establishes the Washington Electric Transmission Authority as a public body and state instrumentality focused on improving reliability, resilience, and affordability. The Authority would lead long-term planning through a 20-year needs assessment and transmission system enhancement roadmap, identifying opportunities for advanced conductors, grid-enhancing technologies, non-wires alternatives, and distributed energy integration. The legislation includes financial mechanisms, including dedicated operating and capital accounts, and directs the Utilities and Transportation Commission to approve enhanced rate-of-return incentives for qualifying transmission modernization investments.
|
|
|
Updates From Our Coalition Partners |
|
|
ACEG and Grid Strategies Release 2025 Transmission Report Card
Americans for a Clean Energy Grid & Grid Strategies
On February 3, Americans for a Clean Energy Grid (ACEG) and Grid Strategies released the third edition of their Transmission Planning & Development Report Card, assessing planning progress across 10 U.S. regions. The report finds that while several regions have made measurable gains—particularly those moving early to align with FERC Order 1920 reforms—planning and development remain uneven and, in many cases, too slow to keep pace with accelerating electricity demand. For the first time, the report also formally evaluates interregional transmission planning, assigning a national average grade of a C-, reflecting continued reliance on voluntary coordination rather than structured interregional requirements. As demand rises from data centers, advanced manufacturing, and electrification, the report emphasizes the importance of proactive, long-term, and coordinated planning as increasingly central to managing congestion costs and reliability risks.
|
|
|
High-Capacity Transmission Permitting Tracker Launched
Americans for a Clean Energy Grid & Grid Strategies
In January, ACEG, in partnership with Grid Strategies, launched a High-Capacity Transmission Permitting Tracker, providing a centralized view of the permitting progress for roughly 200 large, high-voltage transmission projects nationwide. The tool compiles federal and state permitting data, including status updates, lead agencies, key milestones, and links to filings and environmental reviews. By centralizing project-level information, the tracker provides greater visibility into transmission development timelines and identifies where permitting processes may be delaying project advancement.
|
|
|
WATT Coalition Releases 2025 Year-in-Review WATT Coalition
In January, the WATT Coalition released its 2025 Year-in-Review, summarizing progress on grid-enhancing technologies (GETs) and ATTs at the state and federal levels. The report highlights legislative developments, regulatory engagement, and increased visibility for transmission optimization tools. |
|
|
Advanced Energy United Releases West-Wide Market Framework Advanced Energy United
On February 3, Advanced Energy United released A Pathway to a West-wide Energy Market: Affordability, Reliability, and Choice, showcasing the potential for the newly-established Regional Organization for Western Energy (ROWE) to serve as a unified energy market platform across the West. While the ROWE will begin operations by overseeing real-time and day-ahead markets, the report lays out a vision for the organization to offer additional voluntary à la carte market services over time, including transmission planning and operation.
|
|
|
Transmission News Roundup |
|
|
|
Advanced Energy United 1801 Pennsylvania Avenue NW, Suite 410, Washington, D.C., 20006 You are receiving this email at the suggestion or request of Advanced Energy United. .
|
| |
|
|
