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American Focus > Blog > Environment > What Can California Learn From Other States About State Transmission Authorities?
Environment

What Can California Learn From Other States About State Transmission Authorities?

Last updated: June 10, 2025 12:15 pm
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What Can California Learn From Other States About State Transmission Authorities?
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State transmission authorities play a crucial role in helping states develop transmission infrastructure, particularly when it comes to public financing and planning. These entities are instrumental in accelerating the development of transmission projects that facilitate the integration of clean energy sources into the grid. In California, there are currently three bills – SB 330, AB 825, and SB 254 – that propose mechanisms for public financing of transmission, highlighting the importance of this issue in the state.

States like New Mexico and Colorado already have established transmission authorities – the Renewable Energy Transmission Authority (RETA) in New Mexico and the Colorado Electric Transmission Authority (CETA) in Colorado. These entities have been successful in driving transmission development to support clean energy initiatives. For example, RETA has been involved in various projects aimed at increasing the capacity of renewable energy sources in the state, while CETA is focused on improving transmission planning coordination and community engagement practices.

One of the key benefits of state transmission authorities is their ability to leverage public financing to support transmission projects. This approach has been proven to be cost-effective and can lead to significant savings for ratepayers. For instance, a recent report suggests that a public-private partnership for new transmission lines in California could save ratepayers up to $3 billion annually. This demonstrates the potential impact of publicly financed transmission on reducing electricity costs and supporting the transition to clean energy.

Looking at the experiences of New Mexico and Colorado, California can learn valuable lessons on how to establish and operate a state transmission authority effectively. These models showcase the importance of interregional coordination, partnerships, and best practices in transmission development. By implementing public financing mechanisms and enhancing collaboration between stakeholders, California can build a more resilient and sustainable grid infrastructure.

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It is essential for California to act swiftly in passing legislation that supports the establishment of a state transmission authority. This investment in transmission infrastructure is crucial for ensuring a smooth transition to a clean and reliable grid. By setting up the necessary systems and processes, California can pave the way for a more efficient and cost-effective transmission development process, ultimately benefiting all Californians.

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