This study examines how interconnection queue reform and expanded interregional transmission could affect the U.S. power system as electricity demand grows. It compares a Reform scenario with a Business as Usual (BAU) scenario across PJM, MISO, SPP, and the non-CAISO West, regions that together serve about 54 percent of U.S. electricity demand.

In 2035, the Reform scenario results in more solar, wind, battery storage, and interregional transmission, and about 16 percent less gas capacity than BAU. Natural gas remains the largest source of generation. Compared with BAU, Reform reduces grid costs by about $8.4 billion net of $1.8 billion in new transmission investment and lowers residential electricity bills by about $1.3 billion, with savings in every region. It also reduces modeled power shortfall costs by 83 percent. Under high natural gas prices, grid savings rise to roughly $16 billion.

If benefits build gradually, Reform could reduce cumulative grid costs by roughly $91 billion and residential bills by $14 billion between 2026 and 2040.