Regulation of access, pricing, and planning of high-voltage transmission in the US

Joe DeLosa, Johannes P. Pfeifenberger and Paul L. Joskow

Chapter Chapter 6 in Handbook on Electricity Regulation, 2025, pp 121-153 from Edward Elgar Publishing

Abstract: The US regulation of high-voltage transmission is highly complex and, as a result, generally poorly understood. The complexity is created by separate, but overlapping, jurisdictional authorities of the US federal regulators and those of individual states, districts, and territories. We summarize this complex structure of transmission regulation in the US and the history of regulations that have created the industry structure and regulatory frameworks that exist today. We provide an overview of how transmission investments are priced and recovered and the planning processes that individual transmission owners and regional grid operators use to plan the necessary expansion of the high-voltage transmission grid. We also point out some of the economic inefficiencies that are created by a combination of balkanized regulatory structures and outdated industry planning practices.

Keywords: Transmission planning; Transmission rates; Electricity; Regulation; FERC (search for similar items in EconPapers)
Date: 2025
ISBN: 9781035314348
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