The Need for Intertie Optimization: Reducing Customer Costs, Improving Grid Resilience, and Encouraging Interregional Transmission

U.S. power market monitors in the Eastern Interconnection have recommended that grid operators optimize existing interregional transmission for more than a decade, yet inefficient usage of interties continues to raise system costs and reduce reliability, according to this report.

Optimizing the use of existing or new interregional transmission capability between the Southwest Power Pool (SPP), Midcontinent ISO (MISO), or PJM Interconnection (PJM) would provide approximately $50-60 million annually in additional value for every gigawatt of intertie capacity beyond what bilateral trades are currently able to capture.

This report, “The Need for Intertie Optimization: Reducing Customer Costs, Improving Grid Resilience, and Encouraging Interregional Transmission,” is sponsored by the American Council on Renewable Energy (ACORE), the Advanced Power Alliance (APA), Grid United, Invenergy, MAREC Action, and the Natural Resources Defense Council (NRDC).