High Voltage, High Reward Transmission
Summary
An analysis of seven large-scale transmission projects across the United States, ranging from California to Oklahoma, found that all projects delivered benefits exceeding their costs. Projects designed for economic benefits significantly surpassed the FERC 1.25 benefit-to-cost ratio standard and exceeded original planning expectations. Reliability-driven projects also provided unintended economic benefits, often approaching or exceeding the FERC threshold.
Key insights
- An analysis of seven regional and inter-regional transmission projects operating from California to Oklahoma indicates that every project delivered benefits that exceeded its costs, demonstrating that these investments lower electricity costs and improve grid reliability over time.
- Transmission projects designed for economic benefits outperformed original planning expectations and significantly exceeded the Federal Energy Regulatory Commission’s (FERC) benefit-to-cost ratio standard of 1.25. Furthermore, the three projects that had pre-existing benefit-cost analyses (BCAs) surpassed the ratios anticipated in their original plans.
- Large-scale projects driven by reliability needs provided unintended economic benefits in addition to maintaining grid functionality. While these projects were not required to meet FERC's 1.25 benefit-to-cost standard, they still approached or exceeded that threshold.
Cite the original document
- APA
- RMI (2025). High Voltage, High Reward Transmission. https://rmi.org/resources/high-voltage-high-reward-transmission/
- Chicago
- RMI. High Voltage, High Reward Transmission. 2025. https://rmi.org/resources/high-voltage-high-reward-transmission/.
- Wikipedia
- {{cite report |author=RMI |title=High Voltage, High Reward Transmission |date=26 February 2025 |url=https://rmi.org/resources/high-voltage-high-reward-transmission/ |access-date=17 August 2026 |via=Climate Insights Directory}}
- BibTeX
- @techreport{rmi2025high, author = {{RMI}}, title = {{High Voltage, High Reward Transmission}}, institution = {RMI}, year = {2025}, month = feb, url = {https://rmi.org/resources/high-voltage-high-reward-transmission/}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }
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