Wires, Rates, and States: Permitting Transmission for Reliable and Affordable Power

Environmental Permitting and Water InfrastructureHouse Energy and Commerce Subcommittee on Energy · 2026-05-13 · 119th Congress
The House Energy and Commerce Subcommittee on Energy held this hearing to examine how transmission projects are planned, permitted, and paid for, with particular focus on whether states or the federal government (FERC) should hold primary siting authority. Begins at 0:12:17
Transcript
Highlights

Title

Federal vs. state authority over transmission siting and permitting

Purpose

The House Energy and Commerce Subcommittee on Energy held this hearing to examine how transmission projects are planned, permitted, and paid for, with particular focus on whether states or the federal government (FERC) should hold primary siting authority. Witnesses representing state regulators, public power, merchant transmission developers, and a vertically integrated utility debated the value of inter-regional transmission, FERC's dormant "backstop" siting authority, and how to allocate transmission costs fairly among beneficiaries. The hearing followed a related legislative hearing and comes amid rising electricity prices and growing demand from data centers and AI. Begins at0:12:17

Who spoke

Chairman Bob Latta (R-OH), Subcommittee Chair0:12:17: Argued permitting reform should get the federal government "out of the way," not federalize transmission planning, and warned inter-regional lines carry billion-dollar price tags0:13:350:14:51; later questioned witnesses on impediments to permitting1:02:37.

Rep. Kathy Castor (D-FL), Ranking Member0:17:06: Said the grid is 50-100 years old and only 50-53% utilized0:17:40, cited $5 in benefits per $1 of transmission investment and $100/year household savings potential0:18:250:18:57; pressed on Florida's lack of regional transmission investment1:08:301:10:23.

Chairman Brett Guthrie (R-KY), Full Committee Chair0:22:22: Noted the grid delivers 4.4 trillion kWh via 1,200GW of generation and 3,000 utilities0:22:31; asked why states are best suited to permit within their borders1:04:42.

Rep. Frank Pallone (D-NJ), Ranking Member of Full Committee0:25:36: Said electricity prices rose 13% in 2025 and could rise 60% more under the "big ugly bill"0:25:59; noted the 2005 federal backstop siting law has never been used in 21 years and called for updating it0:28:25.

Tony Clark, Executive Director, NARUC (former FERC Commissioner)0:31:14: Outlined five points on state authority — support for planning and permitting reform, but opposition to federal preemption0:31:560:34:04; cited Cardinal-Hickory Creek's 13-14 year federal court delay after states approved it2:09:02.

Randy Howard, General Manager, Northern California Power Agency (also representing TAPS)0:36:20: Said transmission serves 700,000 customers via 16 utilities and that permitting shortcuts risk consumers paying for suboptimal projects0:36:410:38:36; described NEPA delays on a military-load project in a high fire-risk area1:03:44.

Rob Gramlich, President, Grid Strategies0:41:51: Said congestion costs have doubled and China built 80 times more high-voltage transmission than the U.S. last decade0:42:160:43:50; said fixing the federal backstop authority would affect fewer than 10% of lines2:04:17.

Michael Skelly, CEO and Co-founder, GridUnited0:47:01: Described the North Plains Connector linking the Eastern and Western grids from Bismarck, ND to Colstrip, MT0:48:39; cited power price disparities across regions ($0.03 Midwest vs. $0.05 New England) as evidence the grid is failing0:50:22.

Clay Rikard, Senior VP of System Planning, Southern Company0:52:03: Said Southern has 23,000MW of contracted load and 75,000MW in queue, more than double its existing system0:52:52; described modeling 27,000 miles of line and 550 generating units for its expansion1:27:42.

Mark Christie, former FERC Chairman, Director, Center on Energy Law and Policy, William & Mary Law School0:57:16: Argued backstop siting authority is based on a "false premise" that states don't want transmission, and that FERC lacks local expertise0:59:331:00:26; described the contentious PJM "TrAIL" line approval process in Virginia1:59:15.

Rep. Kelly Armstrong (R-ND), Subcommittee Vice Chair mentions from ND at-large seat — not present; correction not needed.

Rep. Buddy Carter / others — see below for additional members who spoke.

Rep. Rick Allen (R-GA)1:24:10: Highlighted Georgia Power's $1.6 billion customer savings commitment and asked Rikard to detail Southern's planning process1:26:19.

Rep. Kevin Mullin (D-CA)1:29:47: Cited a 35GW NERC recommendation and $5.8-7.1 billion in potential 2022 savings from inter-regional transmission1:29:471:30:16; pressed Rikard on whether Georgia would ever accept federally-identified inter-regional lines1:34:27.

Rep. Rich McCormick (R-GA)1:35:29: Asked about generation shortfalls versus transmission, and Southern's Plant Vogtle nuclear success1:35:491:39:12.

Rep. Frank Pallone / others already listed.

Rep. Herb Conaway (D-NJ)1:41:10: Pressed Gramlich and Skelly on the need for inter-regional transmission to compete with China and criticized permitting bills favoring fossil fuels1:41:381:44:14.

Rep. Troy Balderson (R-OH)1:45:52: Asked Howard about local versus federal expertise and Christie about interconnection queue reform under FERC Order 20231:46:041:47:22.

Rep. Kevin Kiley (R-CA)1:56:05: Asked about siting transmission on transportation rights-of-way and supply chain bottlenecks for transformers1:51:491:53:05.

Rep. Tony Gonzales (R-TX)1:56:37: Discussed competition with China and permitting certainty for data-center financed grid investment2:34:43.

Rep. Jennifer Kiggans (R-VA)2:01:47: Compared FERC's one-stop natural gas pipeline permitting to the multi-state transmission process and asked about data center cost allocation2:02:502:04:36.

Rep. Diana Harshbarger (R-TN)2:07:12: Praised TVA's transmission build-out and asked Clark about federal-nexus delays, citing the Cardinal-Hickory Creek example2:08:13.

Rep. Doris Matsui (D-CA)2:11:47: Asked about California's ISO-led regional planning success and the new day-ahead energy market2:12:392:14:08.

Rep. Laurel Lee (R-FL)2:17:12: Questioned Rikard and Clark on whether federal mandates would force Florida/Georgia ratepayers to subsidize other regions' reliability failures, and on FERC Order 10002:18:442:21:23.

Rep. Nick Langworthy (R-NY)2:22:21: Asked Skelly about financing risk from delayed permits, citing the Champlain Hudson Power Express2:23:082:23:40.

Rep. Craig Goldman (R-TX), Vice Chair2:27:32: Asked Christie and Howard to contrast pipeline vs. transmission financing, and about NERC's inter-regional transfer report2:29:232:29:53.

Rep. Randy Weber (R-TX)2:32:58: Warned of Chinese state-directed grid investment and asked about proactive planning models based on Texas's CREZ lines2:33:262:34:43.

Rep. Russell Fry (R-SC)2:38:02: Asked Clark and Christie about the never-used federal backstop siting authority and cost allocation methodology with Rikard2:39:172:42:21.

Rep. Marie Gluesenkamp Perez (D-WA)2:43:19: Asked Gramlich about reducing "seams" between Western day-ahead markets and Skelly about landowner-first permitting sequencing2:44:232:46:17.

Rep. Wesley Hunt (R-TX)2:48:38: Asked Clark, Christie, and Howard why Texas-style state authority should be retained and about federal NEPA delays on rebuilding existing lines2:49:032:52:32.

Rep. Lizzie Fletcher (D-TX)2:53:51: Praised Skelly's work and asked about cost allocation examples for inter-regional geothermal-to-load projects2:57:28.

Rep. Jeff Crank (R-CO)2:59:19: Criticized Colorado climate mandates and asked Rikard and Gramlich about judicial-review reform and eminent domain authority3:00:593:03:07.

Rep. Julie Fedorchak (R-ND, At-Large)3:04:35: Presented a chart on rising transmission costs versus generation costs and pressed Christie and Clark on loose "beneficiary pays" definitions3:05:193:07:39.

Rep. Rob Bresnahan (R-PA)3:10:17: Asked Christie and Clark about local precision in siting decisions versus federal control3:11:063:13:19.

Rep. Mike Collins (R-GA)3:15:29: Praised Georgia's business rankings and asked Rikard and Christie about avoiding one-size-fits-all federal permitting mandates3:16:273:18:33.

Rep. Mariannette Miller-Meeks (R-IA)3:20:56: Asked Clark and Christie how "truly needed" and "cost effective" are defined differently across state lines in MISO3:21:563:24:03.

Key moments

Pallone noted the 2005 federal backstop transmission siting law "has never worked" — not a single line built under it in 21 years0:28:25; Christie and Clark both said it has been used zero times because states already approve most needed lines0:59:332:40:07.

Christie recounted approving Virginia's controversial "TrAIL" line after hundreds opposed it in public hearings, arguing state credibility — not FERC override — is what makes such projects politically survivable1:59:152:00:05.

Rikard testified Southern Company has never been transmission-constrained during a peak event and has not shed firm load since 1977, crediting its vertically-integrated IRP process0:55:481:36:38.

Skelly said grid prices he checked the night before testifying ranged from about $0.03/kWh in the Midwest to $0.05 in New England, illustrating the case for more inter-regional connection0:50:22.

Gramlich said China built roughly 25-80 times more high-voltage transmission than the U.S. in the last decade0:43:501:42:04.

Sharp exchange between Rep. Mullin and Rikard: Mullin cited a Brattle Group finding that Georgia's region is the only one with no major regional transmission builds in a decade and $5.8-7.1 billion in 2022 potential savings; Rikard maintained Southern's cost-benefit analysis shows inter-regional lines are not economic for its customers1:29:471:34:27.

Christie said the "PATH" transmission project was never built but cost Virginia consumers a quarter-billion dollars in rate base charges before cancellation [3:28:55 → 2:28:55].

Howard and Skelly both described ordering ~$1 billion of HVDC equipment years in advance under uncertainty about whether permits would ultimately be approved, citing supply-chain and procurement risk as a major cost driver1:54:201:55:14.

Rep. Lee and Rikard debated whether federal inter-regional mandates would force Florida and Georgia ratepayers to subsidize other regions' generation retirement decisions; Rikard said Southern's full cost-benefit accounting finds inter-regional line costs outweigh benefits for its customers2:18:442:19:46.

Clark cited the Cardinal-Hickory Creek line as an example where states approved a project in a few years, but a federal-nexus trigger (crossing the Mississippi River near public lands) led to 13-14 years of federal court litigation2:09:02.

Metadata

CommitteeHouse Energy and Commerce Subcommittee on Energy
Chamber / CongressHouse · 119th Congress
Date2026-05-13
TypeHearing
Witnesses
The Honorable Tony Clarke — Executive Director, National Association of Regulatory Utility Commissioners
Mr. Randy Howard — General Manager, Northern California Power Agency
Mr. Michael Skelly — President and Co-founder, GridUnited
The Honorable Mark Christie — Director, Center on Energy Law and Policy, William & Mary Law School
Mr. Clay Rikard — Senior Vice President of System Planning, Southern Company
Mr. Rob Gramlich — President, Grid Strategies
Mr. Michael Skelly — CEO and Co-founder, GridUnited
The Honorable Tony Clark — Executive Director, National Association of Regulatory Utility Commissioners
Videoyoutube
Transcript442 caption blocks · 33,338 words · 3:26:47 runtime
EventCongress.gov 119270