A crisis is brewing for the U.S. electricity grid – one that could make your electric bill skyrocket and thwart efforts to address climate change.
To understand the problem, think of transmission lines – the poles and wires that transport electricity from power plants to homes and businesses – as an interstate highway system for electrons. Like too many cars on the road, too many electrons traveling across power lines can cause traffic jams.
These sorts of jams haven’t been a problem until just recently, as power-hungry data centers proliferate and demand from electric vehicles, heat pumps, and air conditioning grows.
As a result, Americans’ electricity rates, which already spiked by more than one-third over the past five years, are poised to keep rising.
Read: Home electricity bills are skyrocketing. For data centers, not so much.
What’s more, when rising demand meets inadequate grid capacity, that slows efforts to address climate pollution. When new clean power sources are stymied by too much traffic on power lines, existing fossil fuel power plants are forced to remain in service and burn gas and coal more often. And when data centers are unable to connect to the grid, they often build dirty on-site natural gas power generation instead.
Adding more transmission lines to the grid would ease congestion, but on average, permitting and building a new transmission line in the U.S. takes a decade. Some big multistate transmission lines have taken over three decades to complete. And the Trump administration recently axed Congress’ attempts to accelerate the process.
A bipartisan group of senators just released a bill that would reform permitting for transmission lines and other large projects, speeding up the process for constructing new lines. But time is running short in this session of Congress, and the stakes of inaction are high.
“Failing to pass permitting reforms would have real consequences for all of us,” said Zach Zimmerman, director of research and policy for Grid Strategies, a power sector consulting firm, in an email. “Every year that major transmission projects are delayed means higher system costs and less ability to move power where it is needed during extreme weather. Without reform, we will continue to pay more for the grid.”
The U.S. has struggled to modernize its grid
The demand for electrons on the U.S. power grid remained relatively flat for decades, increasing by a mere 5% between 2005 and 2023.
Now that’s changed: Analysts at the consulting firm ICF forecast that U.S. residential electricity rates could rise another 15% to 40% over the next five years and double by 2050, with power grid traffic jams being a root problem.
In 2024, the Department of Energy concluded that the U.S. would need between a doubling and quadrupling of its transmission capacity by 2050 in order to affordably meet growing power demand and maintain grid reliability.
To create that capacity would require a build-out of roughly 5,000 miles per year of high-capacity regional transmission, plus additional miles of interregional transmission, according to Grid Strategies. But it took the U.S. nine years, from 2017 through 2025, to build the last 5,000 miles of transmission lines, Grid Strategies estimated.
The only recent year that came close to the 5,000-mile target was 2013, when Texas built close to 3,000 miles of transmission lines. That was the result of a 2005 Texas state law that encouraged building transmission lines in areas with high potential for wind power, known as “competitive renewable energy zones.”
U.S. transmission build-out has since stagnated, averaging just 600 new miles per year since 2017.
Read: How blue California and red Texas became green powerhouses
For comparison, China has been building over 1,000 miles of ultrahigh voltage power lines per year. Ultrahigh voltage transmission lines are like the high-speed rail of transmission. They can carry more electrons more efficiently than America’s high-voltage transmission lines.
Congress has failed to speed up transmission line permitting
Like Texas, Congress passed a law in 2005 in an effort to spur more transmission lines, but with far less success.
One challenge transmission projects face is obtaining permits in every state and local jurisdiction along their proposed path. That can be an onerous and time-consuming process with many potential veto points. In contrast, Congress in the 1938 Natural Gas Act gave the entity now known as the Federal Energy Regulatory Commission the authority to act as a one-stop shop for interstate natural gas pipeline permits.
Lawmakers tried to establish a similar process for interstate transmission lines in the 2005 Energy Policy Act. That law instructed the Department of Energy to establish “National Interest Electric Transmission Corridors.” These are areas where it would be in the nation’s interest to build electrical transmission lines relatively quickly, for example, to relieve traffic jams on the grid. The Federal Energy Regulatory Commission would then have the authority to permit transmission lines along these corridors in consultation with states.
But for over 15 years, the Department of Energy was unable to designate any such corridors due to a series of court decisions in favor of states, landowners, and environmental groups, ruling that the bill’s language was insufficiently clear. Congress subsequently tried to clarify its intent in the 2021 Infrastructure Investment and Jobs Act.
And that effort seemed to succeed. In December 2024, the Department of Energy finally advanced three proposed National Interest Electric Transmission Corridors in the areas identified as having the greatest need for additional transmission capacity.
But in August 2026, Trump’s Energy Secretary Chris Wright announced that he was canceling these three proposed corridors. Despite acknowledging the importance of building new transmission lines, Wright characterized these proposals as part of “a climate-alarmist agenda” intended by the Biden administration “to advance their Green New Scam agenda and accelerate decarbonization.”
What’s next?
Zimmerman of Grid Strategies identified several measures that could speed up domestic transmission permitting and development.
For example, Congress could allow important transmission projects to move directly to the Federal Energy Regulatory Commission for permitting, rather than waiting for the Department of Energy to first define national interest corridors. That would also depoliticize the process, because the Federal Energy Regulatory Commission operates more independently from the White House than the Department of Energy.
Zimmerman also pointed to a 2024 Federal Energy Regulatory Commission rule called Order 1920. That rule, among other things, requires utilities and regional grid operators to consider the next 20 years of power demand forecasts in their transmission planning rather than simply considering short-term needs.
There’s also “a need for Congress to improve permitting for large-scale transmission and address interregional transmission. And establishing a transmission investment tax credit would be helpful,” Zimmerman said by email.
In order to avoid prolonged fights over who pays for how much of a proposed transmission line, Congress could also establish a formula for fairly allocating its costs among the beneficiaries and define the types of benefits that should be included in that cost allocation.
Congress narrowly failed to pass the Energy Permitting Reform Act in 2024, which would have implemented many of Zimmerman’s recommendations. An analysis by energy systems experts at the nonpartisan think tank RMI estimated that the transmission permitting reform provisions in that bill could have allowed enough clean energy to connect to the U.S. grid to reduce the country’s climate pollution by billions of tons.
This week, a group of senators introduced the Bipartisan American Affordability and Jobs Act, which also includes many of Zimmerman’s recommendations. A preliminary analysis of some of the transmission provisions in the bill from the Center for Climate and Energy Solutions estimated that they would cut climate pollution by billions of tons in the next 15 years while reducing Americans’ electricity bills by $19 billion and lessening the risks of widespread power outages.
“This analysis shows that practical reforms to transmission planning and interconnection processes can unlock more clean energy, reduce our reliance on natural gas, lower costs for consumers, and help build a cleaner, more reliable electric grid,” said Nat Keohane, president of the Center for Climate and Energy Solutions. “These benefits are within reach if we move quickly to modernize the systems that power our nation.”
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