Wired for Savings
Expanding California’s electrical transmission system is crucial for the state to achieve its climate targets, but traditional investor-owned utility financing could significantly raise consumer costs. To explore alternatives, Net-Zero California (NZC) and Clean Air Task Force (CATF) commissioned research focused on the California Independent System Operator’s 20-Year Outlook. This plan outlines the new high-voltage transmission lines needed to meet projected energy demand in 2045, and the study investigates if alternative financing and development models could reduce costs for ratepayers.
The research suggests that adopting a public-private partnership approach could deliver considerable savings, potentially reducing costs by up to $3 billion annually, or around $123 billion over 40 years. Key strategies for achieving these savings include using low-cost public debt, selecting developers through competitive bidding, leveraging public ownership to reduce taxes, and implementing private operations for greater efficiency. These steps may also accelerate project timelines. While some California state agencies have the authority to initiate a public financing model, further analysis is needed to establish the best path forward for implementing a public-private partnership model in the state.
Our analysis is informed by in-depth research from DH Infrastructure and EE Analysis, as well as the Berkeley Law Center for Law, Energy, and the Environment. Explore their detailed reports below.
- Wired for Savings: Evaluating the Impact of Alternative Transmission Financing and Development Models on California Ratepayers
By Clean Air Task Force and Net-Zero California - Economic Analysis: Public Sector Financing of Electricity Transmission Lines in California: Financial and Institutional Options for Reducing Customer Costs
By DH Infrastructure and EE Analysis - Policy Analysis: Improving Transmission Financing in California: Alternative Models and Policy Strategies to Increase Affordability
By Berkeley Law Center for Law, Energy, and the Environment - Policy Brief: Wired for Savings Nationwide: Learnings from California on Alternative Financing to Support Low-Cost Transmission
By Clean Air Task Force
