Sponsor
Peter Welch
Senator · D-VT
Senator · D-VT
The bill makes it easier to finance and build very large transmission projects (supporting renewables and resilience) by allowing broad cost recovery, but shifts greater cost risk onto regional ratepayers and introduces regulatory uncertainty and complexity over who pays.
Utilities and developers of very large interstate/offshore transmission projects can recover their costs through an approved tariff, lowering financial risk and making long-distance lines more likely to be built.
Customers in affected planning regions will have their shares of project costs apportioned roughly in line with estimated benefits, so those who benefit more generally pay more.
Regions may see transmission projects that explicitly consider reliability, resilience, and environmental/public-policy benefits, enabling infrastructure that better supports renewables and grid resilience.
Ratepayers in planning regions (households and businesses) could face higher electricity charges to cover very large projects even when local near-term benefits are uncertain.
Broad, discretionary benefit categories (like public-policy or environmental benefits) create room for contested interpretations and likely litigation, increasing uncertainty about who ultimately pays.
Creating a special cost-recovery path for very large interstate/offshore projects while leaving smaller/regional projects under existing FERC authority could complicate planning and produce dual regulatory processes for developers and states.
Based on analysis of 2 sections of legislative text.
Creates a new FPA provision requiring FERC to approve benefit-based cost allocations for very large interstate or offshore transmission projects (≥1,000 MW new lines; ≥500 MW upgrades).
Official title: Amend the Federal Power Act to authorize the allocation of the costs of certain interstate electric power transmission lines and electric power transmission lines that are located offshore, and for other purposes.
Introduced July 22, 2026 by Peter Welch · Last progress July 22, 2026
Creates a new Federal Power Act provision setting rules for how costs are allocated for large interstate or offshore transmission projects labeled "transmission facilities of national significance." It allows proposed owners or operators to file cost-allocation tariffs with FERC and requires FERC to ensure payments are roughly commensurate with estimated benefits across affected transmission planning regions. Defines qualifying projects by capacity thresholds (new lines of at least 1,000 MW or upgrades adding at least 500 MW) completed on or after enactment, and directs that cost-allocation must account for a broad range of reliability, economic, public policy, resilience, environmental, and other anticipated benefits while preserving FERC's existing authority for other transmission facilities.