Grid of the future

How we strengthen and expand the power grid

We're transforming the electric transmission industry: replacing old infrastructure with new, expanding and strengthening the nation’s power grid for resiliency and demand growth, and advocating for fair competition to keep costs to build and maintain infrastructure affordable for consumers. That’s the grid of the future and 
the future starts now.

Competition is our advantage

Competition drives innovation and efficiency

Our mission is to provide infrastructure that supports a reliable and cost-effective power grid for consumers and businesses. Our focus on innovation, cost efficiency, and community engagement sets us apart in the transmission industry.

Competition for new transmission brings significant value to electricity consumers and the regions where they live. By encouraging competition among numerous qualified companies, electricity consumers benefit from innovative solutions that may not be proposed by incumbent utilities. Competition helps deliver the affordable electricity that consumers deserve.
 
Furthermore, enhancing competition enables regions to plan and secure resources more effectively while supporting the development of efficient and new energy sources. Competition is a proven method to identify the most efficient and cost-effective solutions and incentivize companies to complete critical transmission projects on time and at lower costs for consumers.

How does transmission competition benefit ratepayers?

Competition in regional transmission planning processes introduces new and innovative solutions to the design, construction, finance, and operation of transmission projects. Most importantly, though, competition has led to the adoption of cost caps and other financial incentives that shift the risk of project cost overruns to developers and away from electricity consumers. Without competition, incumbent utilities have not been willing to accept the risk of cost overruns on their transmission projects.

Competition is key

Why is competition good for businesses and consumers?

National, independent transmission developers such as LS Power Grid provide cost caps and other financial incentives to ensure price certainty and mitigate risks for consumers. In the absence of competition, incumbent utilities are unlikely to offer cost caps or risk mitigation measures. However, when faced with competition, incumbent utilities tend to implement cost savings and cost caps. Competition serves to control costs and hold incumbent utilities accountable. A study conducted in 2023 by the Electricity Transmission Competition Coalition determined that when electricity transmission competition has been allowed, an estimated range of cost savings from 15%-60% has been observed for new transmission projects.

Allowing competition in bidding for transmission development projects ensures that proposals will include more innovative and robust designs for transmission infrastructure. However, incumbent utilities often engage in anti-competitive practices to limit competitors. Anti-competitive practices lead to reduced innovation and efficiency for consumers. A study conducted in 2019 by The Brattle Group estimated that on average only 3% of U.S. transmission development projects had been awarded competitively from 2013-2017. Opening the transmission sector more fully to competition would benefit consumers by delivering the most innovative grid solutions at the lowest cost.

Market planners use competitive solicitations to evaluate and select transmission developers from numerous bids, ensuring robust solutions for projects. Incumbent utilities often try to limit bidders by supporting anti-competitive practices that reduce competition. Independent developers like LS Power Grid are uniquely qualified to apply national experience to local projects and win projects based on merit. LS Power Grid has offices in the RTO/ISO regions where it operates. Our capital projects total over $7 billion, underscoring our expertise, quality, and financial strength in building transmission infrastructure across the nation.

LS Power Grid and other transmission developers must be vetted by market planners, obtain state public utility commission approval, and comply with all federal regulations. These rules ensure all transmission developers are held accountable to state, regional, and federal regulators. In addition, LS Power Grid’s facilities exceed industry standards for reliability and safety metrics and consistently meet cost commitments.

LS Power Grid strengthens both the power grid and the communities we serve. Although incumbent utilities often claim they protect local interests, the truth is all transmission developers engage with regional and local stakeholders to preserve communities. LS Power Grid’s comprehensive approach for route selection includes public outreach and landowner meetings. We also support local communities by employing local workers, contributing to charities, paying taxes, and volunteering.

Our Stories

Featured Stories

Learn more about the power grid and our process for designing and building energy infrastructure.

Educational Materials

How Electricity Markets Work

Generation

Generation companies and some businesses and homeowners turn energy resources into electricity for public consumption. This energy is sold on an open market where retail electric providers then purchase and sell the electricity to consumers and businesses.

Transmission

Electric transmission utilities, like LS Power Grid entities, operate and maintain high-voltage transmission facilities that deliver bulk electricity to distribution utilities. In turn, the distribution utilities deliver electricity directly to residents and businesses, through lower voltage distribution systems.

Distribution

Distribution is the process by which electricity ultimately gets to your home or business. After being delivered in bulk from generators using the high-voltage transmission systems, electricity is then distributed using the poles and wires you see in your neighborhood and sold to individuals and businesses by a retail electric provider.