America’s aging electric transmission infrastructure is under immense pressure and faces potential failure due to surging electricity demands, particularly from the rapidly expanding data center industry, according to utility leaders and federal regulators who convened in Colorado last week.
More than 75 representatives from the electric transmission sector gathered for WIRES’ spring meeting — a major trade group for the transmission grid — held at The Broadmoor Hotel in Colorado Springs, where they tackled the challenges facing the U.S. grid.
“Our transmission network is fundamental to powering our country and connecting communities across the country. We need to make sure our system is ready to meet our future energy needs,” said Sen. John Hickenlooper, D-Colorado, in a video address kicking off the meeting. “That means modernizing our grid. Expanding infrastructure and streamlining development investments now are going to create an energy future that’s cleaner, more reliable and more affordable.”
The keynote speaker, Lanny Nickell — president and CEO of the Southwest Power Pool (SPP), one of the seven regional transmission organizations (RTOs) in the U.S. — emphasized the urgency of improving grid capacity. The SPP manages power across 14 states, including Iowa, Texas, and Wyoming.
Although Colorado is not part of any RTO, the state Legislature has mandated that all transmission utilities must join an organized wholesale electricity market by January 1, 2030.
Data from the 2021 Princeton Net-Zero America report reveals that Colorado’s energy needs are expected to nearly double by 2050 — rising from 11,099 MW in 2020 to 21,963 MW.
“Reaching the goal of net-zero greenhouse gas emissions by 2050 will require substantial investment in the U.S. transmission grid to accommodate growing electricity demand from EVs, heat pumps, hydrogen producers and tap into the nation’s abundant renewable resource potential,” said Jesse Jenkins, a Princeton energy systems engineer and one of the report’s authors. The study estimates that by 2030, the U.S. will need 60% more transmission capacity, and by 2050, it must triple.
The report also projects the need for an additional 884,000 miles of transmission lines — a massive jump from the current 183,346 miles. This expansion could cost $1 trillion to $1.6 trillion, amounting to 4–6% of the U.S. GDP through 2050.
In Colorado, Xcel Energy is spearheading a $1.7 billion Power Pathway transmission line in the eastern part of the state. Plans are also in place for new high-voltage lines, including a potential extension into the San Luis Valley, backed by Xcel and the Colorado Electric Transmission Authority.
Nickell warned attendees that earlier forecasts of a 25% demand increase by 2030 were already outdated. “I’ve got bad news. Our latest forecast show is going to be worse than that,” he said. “Our most recent forecast…shows that our load could be 75% higher by 2035. Now that’s 10 years, but still, that’s three times what it was projected to be in five years.”
He emphasized the need for increased interstate power transfer capabilities via new high-voltage lines.
The consequences of inadequate power transfer were highlighted during Winter Storm Uri in 2021, when a lack of transmission capacity into Texas contributed to over 246 deaths, according to the Texas Department of State Health Services.
Old transmission systems have proven deadly before — such as the 2018 Camp Fire in California, caused by a failed 95-year-old hanger hook on a power line. The blaze destroyed Paradise and killed 85 people. Line owner PG&E has since paid more than $25 billion in damages and fines.
“One of the most strategic things that we can work on is to be able to maximize that value that I just talked about by building east-to-west transfer capability,” said Nickell. “We’ve got some today. We think that’s going to provide value, but there’s so much more value that could be obtained by drastically increasing that east-to-west transfer capability.”
- Nickell argued that the return on transmission investments is significant, citing $8 to $9 in societal benefits for every $1 spent. Still, he acknowledged that gaining public support and managing the cost burden remain major challenges.
“That’s a good deal. It’s a really good deal, and that’s what we ought to be talking about when we’re talking to consumers who might not want to see a transmission line in their backyard,” Nickell added. “We have to work together on making sure everybody understands we’re going to have to have more transmission and more generation, and that does mean more cost.”
“We have to be creative in order to do this in a way that’s affordable, and I think we can do it. We have to keep the lights on, but we also have to focus on affordability while we’re doing that.”
Disclaimer: The information presented in this news report is based on statements made by industry experts, government officials, and publicly available data. While every effort has been made to ensure accuracy, readers are advised to verify any critical information independently. This content is intended for informational purposes only and does not constitute professional or legal advice.
