Considering Private Enterprise, Public Initiative, and Hybrid Approaches to the Challenge of Electricity Transmission
Summary
The report argues that the current U.S. electricity transmission system is too slow and fragmented to meet decarbonization goals, which require tripling or quadrupling generating capacity and significantly expanding long-distance transmission. It proposes a '5P' framework—planning, permitting, paying, participation, and process—to replace the traditional three-P approach. The authors contrast two primary policy models: a private-enterprise approach relying on market incentives and regulatory streamlining, and a public-initiative approach centered on a National Transmission Authority (NTA) with federal siting and ownership powers. The report concludes that a national transmission plan is an imperative to coordinate these efforts across state and federal jurisdictions.
Key insights
- Achieving a zero-carbon power grid by 2050 requires a massive expansion of infrastructure, including increasing total generating capacity from 1,100 GW to 4,000 GW and more than tripling the capacity of the long-distance U.S. transmission system network.
- The report proposes expanding the traditional 'three Ps' of transmission (planning, permitting, and paying) to a '5P' framework by adding 'participation' to include local community needs and 'process' to provide a standardized framework for project development.
- Current transmission development is hindered by a 'Balkanized' planning process split between federal, state, and local governments, where interregional lines often fail due to inconsistent cost allocation formulas and state-level vetoes.
- The 'private enterprise' model suggests catalyzing development through investment tax credits, permitting reforms for existing rights-of-way, and 'consent-based siting' where developers offer sufficient benefits to host communities to create demand for projects.
- The 'public initiative' model proposes the creation of an independent National Transmission Authority (NTO) or National Transmission Authority (NTA) to own the system, centralize siting and permitting, and utilize federal eminent domain authority.
- Existing federal efforts to establish 'national interest electric transmission corridors' (NIETCs) have largely failed in court because the law grants FERC siting authority only in cases of state delay, not state rejection.
- The report identifies a critical need for a national transmission plan to establish common goals, metrics, and priorities, noting that current FERC rules on cost allocation and RTO planning are insufficient for the required scale and speed.
- Meaningful community participation is essential to avoid project failure; the report suggests that historically, projects have committed less than 2% of overall costs to community benefits.
Cite the original document
- APA
- Reed, L., Abrahams, L., Cohen, A., Majkut, J., Phillips, B., Place, A., & Prochnik, J. (2021). Considering Private Enterprise, Public Initiative, and Hybrid Approaches to the Challenge of Electricity Transmission. Clean Air Task Force. https://www.catf.us/wp-content/uploads/2021/08/CATF-Clean-Energy-Infrastructure-Report.pdf
- Chicago
- Reed, Liza, Leslie Abrahams, Armond Cohen, Joseph Majkut, Bruce Phillips, Andrew Place, and Julia Prochnik. Considering Private Enterprise, Public Initiative, and Hybrid Approaches to the Challenge of Electricity Transmission. Clean Air Task Force, 2021. https://www.catf.us/wp-content/uploads/2021/08/CATF-Clean-Energy-Infrastructure-Report.pdf.
- Wikipedia
- {{cite report |last1=Reed |first1=Liza |last2=Abrahams |first2=Leslie |last3=Cohen |first3=Armond |last4=Majkut |first4=Joseph |last5=Phillips |first5=Bruce |last6=Place |first6=Andrew |last7=Prochnik |first7=Julia |title=Considering Private Enterprise, Public Initiative, and Hybrid Approaches to the Challenge of Electricity Transmission |publisher=Clean Air Task Force |date=August 2021 |url=https://www.catf.us/wp-content/uploads/2021/08/CATF-Clean-Energy-Infrastructure-Report.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}
- BibTeX
- @techreport{reed2021considering, author = {Reed, Liza and Abrahams, Leslie and Cohen, Armond and Majkut, Joseph and Phillips, Bruce and Place, Andrew and Prochnik, Julia}, title = {{Considering Private Enterprise, Public Initiative, and Hybrid Approaches to the Challenge of Electricity Transmission}}, institution = {Clean Air Task Force}, year = {2021}, month = aug, url = {https://www.catf.us/wp-content/uploads/2021/08/CATF-Clean-Energy-Infrastructure-Report.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }
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