Half of U.S. Power Plants Idle as Transmission Bottlenecks Drive Up Electricity Bills

Retail electricity prices have climbed faster than inflation and natural-gas costs since 2022, a trend linked to policy choices and a chronic lack of transmission capacity. Although the nation has built enough generation to meet future demand, only about half of that capacity is currently dispatchable because power cannot be moved efficiently across the grid. A 2023 Department of Energy analysis placed the cost of congestion at roughly $11 billion, and a Lawrence Berkeley National Lab report suggested that a single 1,000-megawatt transmission corridor could shave $135 million off consumer bills each year.

The problem is most acute during extreme weather events, where a small fraction of hours generate the majority of congestion costs. Proposed solutions include modernizing existing lines with reconductoring and dynamic line ratings, but projects like the Bayshore-Lallendorf 345 kV line in Ohio and the Gordonsville 230 kV line in Virginia have stalled due to steep upgrade expenses. Cost allocation rules, in place since 1935, spread transmission costs among beneficiaries, prompting political debate over who should bear the financial burden.