As electricity demand in the U.S. continues to grow, modernizing the transmission system is critical to ensure long-term grid reliability while expanding access to low-cost energy resources like wind, solar, and storage.

In December 2024, the Midcontinent Independent System Operator (MISO), a regional electric grid manager, approved Tranche 2.1—a $21.8 billion investment in 24 new transmission projects across the upper Midwest. The projects are part of a plan MISO develops annually to identify maintenance and upgrades for its infrastructure.

It is estimated that Tranche 2.1 would reduce curtailment in MISO’s Midwest subregion by 11.2 percent, improving access to more economic generation. Curtailment is any action that reduces the amount of electricity generated to maintain the balance between supply and demand, which is critical for avoiding blackouts.

Furthermore, this portfolio provides MISO greater flexibility to tap the lowest-cost energy resources on the grid to meet consumer demand, alleviating instances where grid congestion bottlenecks may force residents to pay for more costly generation sources.

Grid congestion occurs when the power grid becomes overloaded and can’t efficiently transport electricity. This typically happens when electricity demand exceeds the grid’s capacity, which can be caused by high consumption and aging infrastructure.

New transmission also represents an investment in rural communities, offering payments to landowners and generating tax revenue for counties to use for local schools and infrastructure.

Improving the nation’s transmission infrastructure is a cost-effective way to address the rising demand for electricity, as new lines help move existing energy generation to areas that need it most. These new projects create access to more efficient, lower-cost energy-generating sources located further away from customers, deterring the need to develop less efficient energy resources and creating a strong electrical backbone across the region.

By Cora Hoffer, senior policy associate, Center for Rural Affairs. Established in 1973, the Center for Rural Affairs is a private, nonprofit organization working to strengthen small businesses, family farms and ranches, and rural communities through action oriented programs addressing social, economic, and environmental issues.

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