ELECTRICITY TRANSMISSION COMPETITION COALITION

Advancing common-sense policies to ensure that new investment in transmission projects are competitively bid, reducing electricity costs for all ratepayers.

/ ABOUT

Electricity Transmission Project Competition Is Essential

The Electricity Transmission Competition Coalition is committed to increasing competition in America’s electricity transmission infrastructure to meet the United States’ net-zero carbon emission goals while providing savings to ratepayers.

Electricity transmission competition has broad support

Electricity transmission competition has support from the Biden Administration, as well as Members of Congress on both sides of the aisle. ETCC represents a diverse group of more than 85 companies and organizations from 48 states that all advocate for increased competition.

Competition will help the U.S. achieve its net-zero carbon emissions goals at lower costs

If the U.S. is to meet its net-zero carbon emission goal by 2050, we need to expand electricity transmission by 60% by 2030 and triple it by 2050. Electricity transmission competition can help us achieve these goals while saving money for ratepayers.

Investment in electricity transmission are key to managing the energy transition

The continued expansion of electrification requires substantial investment in electric transmission, which represents the fastest growing cost for consumers – to the tune of $800B by 2035. ETCC supports the goal of reducing carbon emissions and firmly asserts that capital spending in the private sector should be done as efficiently as possible to minimize the impact of costs to consumers.

Policymakers should embrace policies that encourage competition

Studies show that the current level of competition in electric transmission has been limited, with only 3% of transmission projects subject to competition. Policymakers should reject policies that give preferential treatment to incumbent monopoly utilities.

/ KEY FINDINGS

Competition Cuts Costs

Requiring competition in building out the transmission grid leads to competitively priced transmission projects, construction of projects that meet reliability requirements, and ensures that transmission investments are market-driven.

/ WIDE SUPPORT

What People Are Saying

State commissions, federal agencies, trade associations, consumer groups, lawmakers, and environmental advocates agree that transmission competition is needed to ensure the creation of cost-effective and efficient transmission projects.

“The Agencies encourage FERC to pursue the alternative proposals to solve the problems FERC has identified before adopting an inefficient, noncompetitive system that relies on any type of ROFR. In particular, FERC should adopt reforms that will improve regional transmission planning and cost allocation processes without harming competition, as well as reforms that will strengthen and expand the implementation of existing competitive processes for transmission design and construction.”

-Federal Trade Commission & Department of Justice

“The right of first refusal language inserted by Senate Amendment 4 will raise costs for rate payers by giving incumbent utility providers in the MISO region a monopoly over new transmission lines. Eliminating competition will cause rates to increase in the MISO region, where there is currently over $3.6 billion in planned transmission construction in the Ameren service territory. Without competition, Ameren ratepayers will pay for these transmission projects at a much higher cost. Competitively bidding transmission construction, instead of giving the utility a monopoly, has been shown to lower costs significantly.”

-Illinois Governor J.B. Pritzker

“We strongly encourage FERC to pursue transmission reforms in a manner that fosters market competition for high-voltage transmission projects to the greatest extent possible. This will help lower the cost of transmission development and will help ensure that electricity prices remain relatively more affordable for consumers."

-Senators Martin Heinrich and Mike Lee

“Given the existing, and increasing, financial burden on transmission customers, it is imperative that oversight of transmission spending effectively ensures that customers do not pay for suboptimal, unnecessary, or imprudent projects."

-California Public Utilities Commission

“Competition for constructing new transmission infrastructure, if implemented as ETCC recommends, will produce the innovation, cost discipline, and accountability on which just and reasonable rates can be derived.”

-Resale Power Group of Iowa

“Eliminating competitive carve-outs that enable regulatory evasion under Order No. 1000 should be prioritized, and R Street supports the comments of the Electric Transmission Competition Coalition in this proceeding.”

-R Street Institute

“The Commission should move forward aggressively to eliminate the absolute power held by incumbent public utilities to prevent competition in the development of new transmission through rights-of-first-refusal or other anti-competitive measures that prevent competition for new transmission development.”

-Industrial Customer Organizations

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News & Resources

The Electricity Transmission Competition Coalition is a leading source for news, policy, research, and education on electricity transmission competition.

Annual Electricity Prices Continue to Rise Amid Summer Heatwave

July 11, 2024

Transmission costs are skyrocketing due to lack of competition and FERC’s “Right-Sizing” provision will only accelerate these rising costs.

95 Electricity Consumer Organizations from Across the Country File for Rehearing Over Anti-Consumer FERC Order 1920

June 12, 2024

The Electricity Transmission Competition Coalition submitted a rehearing request on FERC Order 1920 because the rule creates a new federal monopoly for aging electricity transmission infrastructure replacements, which would unjustly raise electricity prices on consumers.

Annual Electricity Price Inflation Increase Almost Double the CPI

June 12, 2024

The latest inflation data from the Bureau of Labor Statistics shows electricity price inflation continues to exceed the Consumer Price Index (CPI) on an annual basis.