Leveraging State Transmission Authorities for Lower-Cost Infrastructure Financing

The U.S. may need to triple its transmission capacity by 2050, requiring over $40 billion in annual investment by 2031. Relying on private, for-profit utility financing risks increasing consumer rates and reducing political support for the energy transition. Research commissioned by the Clean Air Task Force (CATF) in California suggests that public or public-private financing using low-cost public debt could save ratepayers up to $3 billion annually, or $123 billion over 40 years. To achieve these savings, the document recommends that policymakers employ new institutional models, such as dedicated transmission authorities, and utilize low-cost public debt like bonds and loans. It highlights the roles of existing authorities in New Mexico and Colorado as examples. Key recommendations for state transmission authorities include using planning processes to test alternative financing, appointing coordinators to speed up implementation, utilizing credit enhancements, and issuing general obligation or revenue bonds to alleviate costs for ratepayers.

• The United States is projected to require a tripling of its existing transmission capacity by 2050, with annual investment needs exceeding $40 billion by 2031.
• Traditional financing by private, for-profit utilities passes development costs and rates of return to ratepayers, which may increase costs and hinder political support for clean energy.
• Research in California indicates that public-private or wholly public financing models using low-cost public debt could result in ratepayer savings of $3 billion per year, totaling approximately $123 billion over 40 years.
• State transmission authorities can lower costs and improve efficiency by using low-cost public debt, establishing coordinators to streamline implementation, and utilizing credit enhancements like loan guarantees or loss reserves.
• Existing models in New Mexico and Colorado demonstrate the utility of transmission authorities; New Mexico's RETA has issued bonds and used risk-minimization tools, while Colorado's CETA is authorized to sell electric transmission bonds.

APA

Clean Air Task Force (2025). Leveraging State Transmission Authorities for Lower-Cost Infrastructure Financing. https://cdn.catf.us/wp-content/uploads/2025/03/04140312/wired-for-savings-state-transmission-authorities.pdf

Chicago

Clean Air Task Force. Leveraging State Transmission Authorities for Lower-Cost Infrastructure Financing. 2025. https://cdn.catf.us/wp-content/uploads/2025/03/04140312/wired-for-savings-state-transmission-authorities.pdf.

Wikipedia

{{cite report |author=Clean Air Task Force |title=Leveraging State Transmission Authorities for Lower-Cost Infrastructure Financing |date=March 2025 |url=https://cdn.catf.us/wp-content/uploads/2025/03/04140312/wired-for-savings-state-transmission-authorities.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{cleanairtaskforce2025leveraging, author = {{Clean Air Task Force}}, title = {{Leveraging State Transmission Authorities for Lower-Cost Infrastructure Financing}}, institution = {Clean Air Task Force}, year = {2025}, month = mar, url = {https://cdn.catf.us/wp-content/uploads/2025/03/04140312/wired-for-savings-state-transmission-authorities.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }