High electricity prices can be addressed by building more power from every source, but especially more cost-effective sources like wind and solar. On Wednesday, I spoke at Energy & Commerce’s Energy Subcommittee hearing on permitting transmission for reliable and affordable power. Watch my full remarks and questions for the witnesses here.
Energy demand is rising rapidly due to new AI data centers, increased manufacturing, and by greater demand for air conditioning all over the country. Over the next five years, demand is expected to grow by almost 16 percent, according to Grid Strategies. Comparatively, since 2005, power consumption has never increased by more than 1 percent each year. But our national power grid can’t keep up - it’s too old, slow, and insecure. It’s also costing us money. In 2023, adequate and efficient transmission investment would have saved consumers between 3.5 and 5 billion dollars. Right now, new energy projects have to pay expensive fees to connect numerous, smaller transmission lines to the existing grid. That’s like if we had to build new highways to crisscross the United States every time we want to connect two towns.
If we want to strengthen American energy independence, prevent blackouts and brownouts, prevent cyberattacks, and lower electricity bills, we need to build more modern transmission lines to move power from where it’s generated to where it's needed. And we need to do it much faster than it currently takes, which is roughly seven years for the process and just three years for construction. The North American Electric Reliability Corporation (NERC) found that we need to add 35 new gigawatts (GW) of power transfer capability to meet demand and withstand extreme weather events. Since 2014, North America has completed 7 new GW of interregional transmission. In the same timeframe, South America completed 22 GW and Europe completed 44 GW. China completed 260 GW.
Our outdated permitting laws prevent us from building enough energy supply and getting it where it’s needed most. For years, I've pushed to reform these laws so we can meet today’s challenges and lower costs. We’re making progress to pass commonsense reforms, but we also need to ensure the Trump Administration upholds the law and faithfully implements any bipartisan energy legislation – not just the parts they like.