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Subcommittee highlights urgent need for transmission build‑out and faster interconnection to meet AI and electrification demand

2238569 · February 5, 2025

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Summary

Members and witnesses said load growth from data centers, electrification and manufacturing will require rapid build‑out of generation and interregional transmission capacity. NERC’s finding for 35 GW of interregional transfer capability was cited as a benchmark.

Chairman Latta opened a round of questioning by highlighting studies showing rapid growth in electricity demand and asked witnesses how to match that growth with reliable supply. He cited PJM projections and the broad increase in data center load while asking how policy should respond.

Tyler O'Connor told members the country must act on transmission: “the United States must build 35 gigawatts of interregional transfer capability of transmission in order to reliably serve the demands of tomorrow,” a figure he referenced from the North American Electric Reliability Corporation report commissioned by the committee. Witnesses explained why transmission and interregional transfer matter: they enable regions with abundant wind, solar or other resources to deliver power where it is needed and reduce price volatility.

Members and witnesses discussed practical steps to advance transmission projects: clarifying federal siting authority for interregional lines, maintaining Department of Energy and FERC staff to expedite permitting, funding programs such as DOE’s Transmission Facilitation Program, and addressing shortages in critical grid components (transformers, breakers, switchgear). The hearing also revisited the interconnection queue problem: witnesses noted that the majority of queued resources are wind, solar and batteries, which can come online faster than thermal or nuclear plants, but the queue and equipment shortages are delaying many projects.

No committee action was taken; members said they will pursue legislative and oversight options to prioritize transmission planning and permitting.