| Resource Type | Report |
| Author / Source | Tyler Farrell, Celia Tandon, Beverly Bendix, Charles Teplin (RMI) |
| Publication Date | 2025 |
| Location | United States |
| Initiative Type | Policy, Partnership |
| Project Complexity | Intermediate |
| Recommended For | Board, Staff |
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Estimated reading time: 30+ minutes
Why This Matters for Rural Electric Co-ops
Transmission expansion is often debated as a cost driver, but real-world projects show that well-planned regional transmission can reduce overall system costs while improving reliability. Across seven projects studied, every dollar invested returned at least that amount in savings, with benefit-to-cost ratios ranging from 1.1 to 3.9.
For rural electric cooperatives, participation in regional transmission planning can unlock access to lower-cost generation, reduce congestion costs, and strengthen resilience during extreme weather events. Co-op leaders can use this report as evidence when engaging G&T partners or RTO processes about the long-term value of regional transmission investment.
Key Takeaways
| › | Every project studied paid for itself, even under conservative accounting. Transmission is a long-term affordability tool, not just a reliability cost. |
| › | Congestion relief (cheaper power flowing freely instead of expensive backup generators running) was the largest single source of savings across all seven projects. |
| › | Regional transmission planning lets utilities share resources across wider areas, reducing dependence on local, higher-cost generation. |
| › | Benefits grow over time as upfront capital costs decline, so the case for transmission investment gets stronger, not weaker, over a 40-year lifespan. |
Implementation Considerations
- Regulatory or Governance Considerations: Co-ops must engage early in RTO or G&T planning processes. Influence over transmission decisions diminishes significantly once projects are approved.
- Staffing or Technology Requirements: Evaluating transmission benefit-cost analyses requires technical expertise most smaller co-ops lack. G&T relationships or consultants are likely necessary.
Notable Examples
- Cross-Sound Cable: Delivered a 2.4 benefit-to-cost ratio and provided emergency grid stabilization during the 2003 Northeast blackout.
- CapX2020 (Capacity Expansion by 2020): A joint initiative of 10 utilities that achieved a 1.9 benefit-to-cost ratio while enabling 1.5 GW of wind power.
- Beaver to Oklahoma City (SPP): Exceeded anticipated benefits nearly threefold, generating a 3.9 ratio while enabling 2.9 GW of wind and over 1,400 jobs.
- Valley to Colorado River (CAISO): Achieved a 3.3 benefit-to-cost ratio by enabling 3.9 GW of solar generation near the Los Angeles Basin.
View Full Document Requires name and email to access
Estimated reading time: 30+ minutes
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