Transmission congestion costs measure the extra expense of delivering electricity when grid bottlenecks force the system to rely on higher-priced local generation. In recent years congestion charges have remained above $10 billion annually across the U.S., and 2024 saw these costs exceed $12 billion due to limited new transmission, rising demand, and extreme weather. Elevated congestion costs are now considered the ‘new normal’ and are expected to stay high as load grows and renewable generation accelerates.
Past 3 months | Next 3 months forecast
Past 3 months | Next 3 months forecast
Congestion costs are expected to keep rising over the next six months as demand growth outpaces transmission build-out and extreme weather continues. Unless major new transmission projects or congestion-management reforms are implemented soon, businesses should anticipate sustained high congestion costs and factor them into energy procurement strategies.
Electric Rate Impact: ▲ Electric rates up