Competitive Solicitation in Transmission Line Development Lowers Ratepayer Costs and Decreases Delays

Overview

The California Independent System Operator (CAISO), the state’s electric grid operator, competitively solicits bids from private companies to develop and build large transmission lines.  Current CAISO rules only require the largest transmission projects that exceed an arbitrary voltage threshold to be competitively solicited.  The Public Advocates Office recommends that the CAISO eliminate the threshold to increase the number of competitively solicited projects and associated ratepayer benefits. Based on historical experience with competitive solicitations for large transmission lines, the Public Advocates Office anticipates this change would yield significant ratepayer benefits, including (1) lower project capital costs, (2) shorter development times, and (3) stronger alignment between utility and ratepayer interests.

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