WASHINGTON, D.C. — A failure to plan and build sufficient transmission capacity has led certain grid operators to institute interconnection queue-rationing frameworks, likely raising costs for consumers, according to a new report released last week by the American Council on Renewable Energy (ACORE) and Grid Strategies LLC. In evaluating the actions of four grid operators, the report finds that while certain rationing mechanisms may accelerate generation projects, some sacrifice fairness, transparency, and adherence to open-access principles.

Prioritizing specific generation projects over others undermines fair competition and introduces regulatory uncertainty. This timely report comes as grid operators race to cost-effectively meet rapidly growing electricity demand while ensuring reliability.

“Using interconnection rationing frameworks can undermine fair competition principles and hurt American consumers,” ACORE President and CEO Ray Long said. “It’s important that the discriminatory processes are truly one-time solutions as grid operators continue to implement FERC-mandated transmission planning and interconnection reforms.”

The report evaluates recent proposals from the grid operators in California, the Great Plains, the region covering the Midwest to the Gulf States, and Mid-Atlantic, and proposes a two-path framework for ensuring access and competition. Important first steps are ensuring any “fast-lane” approaches are last-resort use only when certain conditions are met and integrating interconnection with proactive transmission planning to prioritize commercially ready and policy-aligned resources.

“Between retiring capacity and rising demand, grid operators across the country face resource adequacy challenges exacerbated by the interconnection queue backlog,” said Houtan Moaveni, Vice President at Grid Strategies and lead author on the report. “Our report offers a framework for grid operators to strategically manage the interconnection queue and bring critical generation online quickly without sacrificing transparency and competitiveness.”

Click here to download the report and click here to view the webinar recording.  

About ACORE

ACORE is a nonpartisan nonprofit organization that promotes investment in American renewable energy infrastructure, development, and innovation. In partnership with a broad membership that spans the energy value chain, ACORE advances the public policies, market research, and industry convenings to position the United States as a global leader in renewable energy deployment.

ACORE’s membership includes renewable energy investors, developers, energy buyers, power generators, manufacturers, and energy providers. In 2024, nearly 80% of the booming utility-scale domestic renewable energy growth was financed, developed, owned, equipped, or contracted by ACORE members.

About Grid Strategies

Grid Strategies LLC is a power sector consulting firm helping clients understand the opportunities and barriers to integrating clean energy into the electric grid. Drawing on extensive experience in state regulation, transmission planning, and wholesale markets, Grid Strategies analyzes and helps advance grid integration solutions.

MEDIA CONTACT

Stephanie Genco 
Senior Vice President, Communications 
communications@acore.org 

Grid Strategies 
press@gridstrategiesllc.com

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