Assembly hearing: alternative financing, faster delivery could cut transmission costs; backlog and supply chains drive price risks

The Assembly Committee on Utilities and Energy held an informational oversight hearing titled “Strategies to Reduce California Transmission Costs,” where public advocates, consultants, utilities and private developers discussed the state’s transmission backlog, financing options, and causes of project delays. The session examined possible savings from alternative financing and practical barriers — from permitting timelines to supply-chain lead times — that are driving up costs.

Karen Haida (Public Advocates Office at the CPUC) opened the panel with a summary of the office’s transmission data dashboard. Haida said CAISO has approved dozens of projects that are not yet built, creating a backlog that is growing because approvals outpace construction. Key figures presented: roughly $19 billion in estimated cost to complete currently approved but unbuilt projects, an average transmission-project timeline of about 8.2 years, and a Transmission Access Charge (TAC) that has increased more than 3.5 times since around 2009. The Public Advocates Office is updating its dashboard with the most recent CAISO planning data and expects another release later in the summer.

Consultants and finance experts described several levers that could reduce costs. Denzel Hankinson (DH Infrastructure) and Neil Matuca (Net 0 California) presented analyses showing that combining public-sector financing…