Rethinking transmission policy for an energy emergency

Benjamin Dierker | Source: Utility DIVE | Posted 09/03/2025

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While a bidding process is often presumed to deliver consumer benefits, bidding efforts for transmission have not followed that pattern.


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In light of a declared national energy emergency, the article emphasizes the urgent need for investment in energy infrastructure to support growing electric demand from sectors like data centers and manufacturing. The current infrastructure is insufficient to deliver cost-effective energy, leading to potential economic losses. The author critiques the Federal Energy Regulatory Commission's Order No. 1000, which aimed to enhance competition in transmission development but has resulted in prolonged planning and development timelines without significant cost savings. The article argues for a recalibration of policies to favor local utilities, which can expedite project delivery and better align with community needs.

The discussion highlights that local electric companies possess valuable regional expertise, enabling them to provide more accurate cost estimates and timely project execution. While proponents of Order No. 1000 cite potential benefits from competitive bidding, the article contends that the delays introduced by such processes can outweigh any theoretical savings. It calls for a focus on frameworks that prioritize speed and reliability in infrastructure development, suggesting that reinstating the right of first refusal (ROFR) for local utilities may be a pragmatic solution to enhance grid resilience and economic growth during this energy emergency.



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Source Link: https://www.utilitydive.com/news/rofr-transmission-policy-energy-emergency/758662/

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