This report “Delaying transmission increases costs and reduces benefits for consumers” from Grid Strategies, conducted on behalf of WIRES, quantifies how delays in developing large-scale transmission affect consumers and the broader economy. It finds that delaying needed expansion and modernization of the electric grid imposes significant costs on consumers by postponing or forfeiting key benefits, while also hindering economic growth, job creation, and national security objectives – including those tied to AI advancement.
To estimate costs, the report reviews eight benefit-cost studies of transmission portfolios from across the US. Using the total benefits reported in each study, the analysis converts those benefits into annualised values and estimates the consumer cost of a one-year delay in placing transmission projects into service. The findings show that for every $1 billion invested in well-planned, large-scale transmission, a one-year delay results in approximately $150 million to USD370 million in lost net benefits to consumers. These losses stem primarily from higher fuel and capacity costs, continued congestion, and reduced power system reliability.
In addition to direct consumer impacts, delayed transmission investment slows economic growth, hinders job creation, and poses risks to national security. The report finds that each $1 billion in delayed transmission investment defers between 11,000 and 25,000 direct, indirect, and induced job-years. Moreover, the additional transmission capacity that would have resulted from timely investment enables broader economic expansion by supporting new or expanded businesses, including data centres and manufacturing facilities, further amplifying employment and growth benefits.
In conclusion, consumers benefit most when transmission projects are completed and energised as quickly as possible. Many of the economic and reliability benefits of transmission arise from more efficient system operation. The affordability, reliability, and resilience of the nation’s electricity supply depend heavily on the timely execution of efficient and cost-effective transmission expansion, making delays costly not only for consumers but for the broader economy as well.
Access the report here