| Resource Type | Research Report |
| Author / Source | Alyssa Perez, Erifili Draklellis, Chaz Teplin, Claire Wayner (RMI) |
| Publication Date | 2025 |
| Location | United States |
| Initiative Type | Policy, Program |
| Project Complexity | Intermediate |
| Recommended For | Board, Staff |
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Why This Matters for Rural Electric Co-ops
State regulators play a critical role in approving transmission projects, allocating costs, and coordinating with regional grid planning entities. The US will need to expand its transmission system by 2–2.6 times its 2020 size by 2050, and how that gets built will directly affect what co-ops pay for wholesale power.
For rural electric cooperatives, understanding these regulatory roles helps co-ops anticipate how oversight decisions may affect future power supply costs and grid investment. Co-ops can use this handbook to engage their state PUC and ask better questions when transmission projects are proposed.
Key Takeaways
| › | State regulators shape transmission planning, permitting, and cost recovery, all of which affect co-op power costs. |
| › | Transmission spending is at record highs, but miles built are at all-time lows. Regional planning is a more cost-effective alternative. |
| › | Alternative transmission technologies (ATTs) like advanced conductors can expand grid capacity faster and cheaper than new builds. |
| › | State regulators can require transmission to be included in utility resource plans, reducing long-term cost risk for co-ops. |
Implementation Considerations
- Regulatory or Governance Considerations: Co-ops should monitor state PUC dockets on transmission planning and cost allocation. Smaller co-ops may need support from statewide associations to participate.
Notable Examples
- Illinois Commerce Commission: Approved a renewable energy zone plan in 2024 to guide regional transmission planning with MISO and PJM.
- Colorado Electric Transmission Authority: Found 80% of identified transmission needs could be met through reconductoring rather than new construction.
- Northeast States Collaborative on Interregional Transmission: Showed states can advance interregional planning voluntarily, without federal requirements.
- New York Public Service Commission: Required over $117 million in habitat restoration funding as a condition of approving one transmission project.
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Estimated reading time: 30+ minutes
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