While capital spending by investor-owned utilities (IOUs) has doubled over the past decade, customers’ ability to absorb rising electric bills remains limited. As IOUs plan for the future, they must weigh customer needs against independent system operator (ISO)/regional transmission organization (RTO) projects that advance broader regional grid goals. Reconciling competing demands calls for an upfront portfolio-based approach, one that evaluates timelines, weighs risks and considers long-term objectives. Success depends on early alignment between investment priorities and system needs, transparent communication, and analysis that broadens the view of system benefits.
An effective planning process begins with a forward-looking view of how the grid will evolve. Large load interconnection, electrification, distributed resources and renewables are reshaping where and when power is needed or available.
To better manage uncertainty and holistically evaluate system benefits, FERC Order 1920 and related planning studies promote transmission planning based on multiple long-term scenarios that reflect expected changes in load growth and generation mix over the next 20 years. When transmission backbone development is coordinated with future generation and load locations, projects are more likely to be rightsized and well positioned to meet evolving system needs.
In addition, permitting feasibility must be established early. Transmission corridors face significant scrutiny, and even technically sound routes can stall if community or environmental concerns are not addressed early. By collocating within existing rights-of-way where possible, developers can minimize land-use challenges. Early screening for audible noise and radio interference (AN/RI) and electromagnetic fields (EMF) provides valuable data to address community sensitivities. Likewise, flagging cultural and environmental factors early helps avoid costly rerouting.
Regulatory tools also help keep projects on track. The Department of Energy’s (DOE) updated National Environmental Policy Act (NEPA) categorical exclusions speed reviews for certain low-impact activities, while the FAST-41 timetable coordinates federal and state reviews under a single master calendar, reducing delays caused by fragmented processes. Together, these tools provide developers with clearer pathways through complex permitting requirements.
When combined with early identification of high-value routes and substation solutions, these practices do more than de-risk projects. They establish credibility with regulators, reduce total system cost, and create a more predictable path for cost allocation and scheduling across jurisdictions.
The Case for Coordinated Planning
Coordinated planning done early — setting demand and growth scenarios, addressing system and siting constraints, and locking in equipment needs — delivers proven, far-reaching benefits.
| Coordinated Planning Benefits |
Transmission Lines |
Substations |
| Rightsizes assets |
- Aligns conductor size, tower geometry and capacity with long-term demand
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- Prevents delays, overpurchases and redesigns of high-cost, long-lead items
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| Avoids piecemeal fixes, redesign and overruns |
- Streamlines permitting across jurisdictions
- Accounts for long-lead equipment, steel and other materials
- Prevents costly redesigns of shunt devices, ROW
- Reduces need for incremental upgrades after projects go into service
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- Locks in transformer, grounding and reactive support specs early
- Reduces outage windows, change orders and budget risks
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| Mitigates risks |
- Improves cost-benefit ratio and lowers capital risk by addressing congestion and reliability constraints upfront
- Keeps procurement on track and minimizes change orders by flagging technical challenges (surges, geomagnetic disturbances, fault current) early
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- Minimizes outages by phasing construction, using mobile transformers and selecting GIS/AIS early
- Controls costs by locking in substation equipment choices and construction sequencing upfront
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| Streamlines permitting |
- Eases permitting by demonstrating proper sizing and reliability benefits, lowering soft costs, and aligning with revenue requirements
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- Reduces opposition and expedites environmental reviews by documenting compliance with noise, EMF and footprint requirements
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| Integrates reactive support |
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- Stabilizes voltage and manages long-line charging with proper siting/sizing of shunt reactors, SVCs and STATCOMs
- Lowers lifetime system costs
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