PJM transmission expansion projects could save US households $6.7 billion over 40 years

Transmission expansion projects in the Eastern Interconnection could generate up to $15.3 billion in net system value through 2050, with PJM Interconnection alone receiving $6.7 billion in benefits ov

PJM Interconnection and other regional grids could save households $6.7 billion over 40 years through transmission expansion projects in the Eastern Interconnection, according to a September 2026 study by S&P Global's CERA Consulting for the Electricity Customer Alliance, National Grid, and Converge Strategies. The analysis projects $15.3 billion in net system value by 2050 from 13 high-value transmission projects, including $1.9 billion for the South Power Pool and $851 million for MISO South. Current U.S. power supply construction includes 67 GW of new generation capacity—27 GW solar, 17 GW battery storage, 15 GW wind, and 9 GW gas-fired generation—while transmission expansion would lower retail electricity rates and improve resilience to extreme weather.

The mechanism hinges on modernizing grid infrastructure to handle growing demand without overloading existing systems. By prioritizing inter- and intraregional transmission projects under high-demand scenarios, the study models how expanded capacity could reduce costs and prevent blackouts. This directly supports energy affordability and reliability for millions of households in the PJM region and beyond.

For basic needs, cheaper electricity means more households can access reliable power without financial strain, particularly during extreme weather events that threaten health and security. Reduced transmission costs also free up resources for other essentials like healthcare and heating. However, the benefits assume unconstrained transmission—meaning actual outcomes could shrink if new projects face regulatory delays or grid constraints.

What to watch: Implementation challenges in constrained transmission scenarios, where benefits drop significantly. The study’s 1.77 benefit-to-cost ratio shows strong economic viability but requires real-world testing against grid limitations. Current grid capacity growth alone won’t offset these risks without coordinated transmission investment.

Source: Utility Dive