Wired for Savings Nationwide

The document argues that traditional investor-owned utility (IOU) financing for transmission projects risks increasing consumer rates and proposes public financing as a lower-cost alternative. Research focused on California indicates that a "lease-type" public-private partnership could save ratepayers up to $3 billion annually, or $123 billion over 40 years, by utilizing low-cost public debt, reducing taxes, and maintaining private sector operational efficiency. The brief outlines several public financing mechanisms, such as public bonds and loans, and provides policy recommendations for other states to implement similar cost-saving reforms, including the use of credit enhancements and the designation of state-level coordinators for high-priority transmission lines.

• Implementing public-private financing for transmission infrastructure in California could result in ratepayer savings of up to $3 billion per year, totaling approximately $123 billion over a 40-year period.
• Among the four models analyzed for California, the "lease-type" public-private partnership is the most cost-effective, followed by the wholly public model; the "concession-type" partnership is more expensive because it continues to rely on private sector financing.
• The primary drivers of cost reductions in alternative financing models include the replacement of equity with low-cost public debt, the use of competitive procurement, tax exemptions associated with public ownership, and the efficiency of private operations and maintenance.
• The U.S. electric grid faces significant vulnerabilities and constraints, with nearly 70% of transmission lines being over 25 years old, and a projected annual underinvestment gap of more than $40 billion by 2031.
• California specifically estimates a need for between $46 billion and $63 billion in new high-voltage transmission infrastructure investments to achieve a clean energy electric grid by 2045.
• Public financing can reduce costs through several mechanisms: public bonds and loans provide access to lower interest rates due to high government credit ratings, replace high-cost equity (dividends) with lower-cost debt (interest), and are often tax-exempt.

APA

Clean Air Task Force (n.d.). Wired for Savings Nationwide. https://cdn.catf.us/wp-content/uploads/2024/12/01211402/wired-for-savings-nationwide.pdf

Chicago

Clean Air Task Force. Wired for Savings Nationwide. n.d. https://cdn.catf.us/wp-content/uploads/2024/12/01211402/wired-for-savings-nationwide.pdf.

Wikipedia

{{cite report |author=Clean Air Task Force |title=Wired for Savings Nationwide |url=https://cdn.catf.us/wp-content/uploads/2024/12/01211402/wired-for-savings-nationwide.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{cleanairtaskforcendwired, author = {{Clean Air Task Force}}, title = {{Wired for Savings Nationwide}}, institution = {Clean Air Task Force}, url = {https://cdn.catf.us/wp-content/uploads/2024/12/01211402/wired-for-savings-nationwide.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }