Transmission congestion costs topped an estimated $20.8 billion in 2022 – $7 billion higher than 2021. Within the regional transmission organizations, these costs increased by more than 200% since 2016. Alleviating these costs will require building and enhancing transmission capacity between areas with differences in power supply costs and need.
- 18 states and the District of Columbia have more megawatt-hours in sales than net generation.
- Transmission congestion costs in the Southwest Power Pool were more than six times higher in 2022 than 2016.
- An analysis of the potential value of new transmission found a median marginal value of $24 per megawatt-hour in interregional connections.
- The highest value connection estimated would connect SPP and ERCOT.
- Extreme conditions and events skew the perceived value and need for transmission.
