- Newsroom DATA Coalition Releases Whitepaper Highlighting Inefficiencies in Competitive Transmission Projects
DATA Coalition Releases Whitepaper Highlighting Inefficiencies in Competitive Transmission Projects
February 6, 2025 | ITC Holdings
NOVI, Mich. (Feb. 6, 2025) – – The Developers Advocating Transmission Advancements (DATA) Coalition, which includes ITC Holdings Corp. (ITC) and other leading energy companies, has released a unique, new whitepaper that further explores the inefficiencies of so-called competitive bidding for transmission. The report expands on a body of real-world evidence showing that competitive bidding is detrimental to transmission planning, creating inefficiencies, undermining collaboration and likely driving higher costs and delayed benefits to customers over time.
Titled “Recent Experience with Competitive Transmission Projects and Solicitations,” the whitepaper presents several recent case studies from PJM, MISO, New England and CAISO that illustrate the serious failures of competitive solicitations in lowering costs, fostering innovation and timely development of a reliable transmission grid. Key findings include:
- The Competitive Bidding Process Invites Bait and Switch Tactics:
- Competitive bids often overlook essential project elements such as the full cost implications of a project and the feasibility of routing plans, but bidders are often able to evade accountability for these choices. In one recent example, local incumbents needed to step in to “rescue” a project from poor route selection by a competitive developer.
- Cost caps in competitive bids are frequently illusory, leading to renegotiations and increased costs post-award. Cost caps end up being a tool used to strategically win a project and tout the success of a proposal, while ultimately offering no protections to customers. In one recent case, a binding, fixed cost cap proved unrealistic and resulted in project cancellation when the developer’s cost expectations changed.
- Competitive Bidding Impedes Progress on America’s Most Critical Infrastructure Needs:
- Competitive processes have resulted in project selections that do not right-size solutions or select the most cost-effective, long-term options, leading to inefficient planning and higher costs for customers in the long run.
- Competitive bidding policy creates incentives for developers to argue over project rights, fostering uncertainty and undermining collaboration in the planning process. Recently, developers have engaged in serial litigation, threatening the progress of crucial projects in the Midwest. This provides no value to customers and indicates a policy problem that needs to be solved.
“Order No. 1000 was intended to foster competition and innovation in transmission development, but our findings show that it has failed to yield benefits and instead created obstacles that impede progress,” said Jordan Kwok, Director of Federal Regulatory Affairs at Exelon Corporation. “It’s time to rethink this policy to ensure we can deliver reliable and cost-effective transmission services to our customers. Now more than ever, it’s crucial that we remove these barriers to infrastructure development so we can focus on building the energy grid that supports the needs of our country, now and in the future.”
Since its inception, the DATA Coalition has been dedicated to informing the policy debate on Order No. 1000 competition through rigorous quantitative analysis and evidence. By developing a series of quantitative and data-driven reports, the group has highlighted cost figures from late-stage projects, demonstrating the lack of cost savings from competition. Previous reports, including those from December 2023 and August 2022, provide further insights into these findings.
About DATA Coalition
The DATA Coalition is a group of leading energy companies advocating for advancements in transmission development to ensure reliable and cost-effective energy delivery across the United States. Members include Ameren, Eversource Energy, Exelon Corporation, ITC Holdings Corp., National Grid USA and Xcel Energy.
About ITC Holdings Corp.
ITC Holdings Corp. is the largest independent electricity transmission company in the United States. ITC provides transmission grid solutions to improve reliability, expand access to markets, allow new generating resources to interconnect to its systems and lower the overall cost of delivered energy. Through its regulated operating subsidiaries ITCTransmission, Michigan Electric Transmission Company, ITC Midwest and ITC Great Plains, ITC owns and operates high-voltage transmission infrastructure in Michigan, Iowa, Minnesota, Illinois, Missouri, Kansas, Oklahoma and Wisconsin. These systems serve a combined peak load exceeding 23,000 megawatt hours along 16,000 circuit miles of transmission line, supported by 750 employees and 900 contractors. ITC is based in Novi, Michigan. For further information visit www.itc-holdings.com. ITC is a subsidiary of Fortis Inc., a leader in the North American regulated electric and gas utility industry. For further information visit www.fortisinc.com..
Media Contact: Lindsay Clark, Phone: 248-946-3265, E-mail: lclark@itctransco.com
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