Grid Operators Reject New Southern Seam Transmission Projects
Businesses should anticipate continued energy price volatility as regional congestion remains unaddressed by new infrastructure.
Updated on Oct. 29, 2026 in Utilities
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Grid operators MISO and SPP have declined to advance any new interregional transmission projects along their Southern seam after a joint evaluation. The decision halts potential efforts to increase grid capacity between the two regional systems.
Why it matters
The rejection of these projects maintains current congestion bottlenecks that can drive up energy costs for operators in the affected regions. A recent Brattle Group report suggests operators may be missing significant economic benefits by using evaluation models that undervalue potential cost savings by 2-3 times.
MISO and SPP rejected all proposed interregional transmission projects, while analysis suggests current planning models undervalue potential cost savings by 2-3 times compared to actual grid benefits.
The players
MISO
A regional transmission organization that manages the movement of wholesale electricity across all or part of 15 U.S. states.
SPP
A regional transmission organization that oversees the bulk electric grid and wholesale power market across central U.S. states.
The Brattle Group
An economic consulting firm that provides analysis on regulatory and infrastructure investment trends.
The details
Grid operators rely on a joint interregional planning process to assess the financial viability of transmission expansion. By evaluating these projects against strict cost-benefit requirements, MISO and SPP concluded that none of the proposed upgrades reached the necessary financial thresholds. This process determines whether infrastructure investments move from planning to development, effectively dictating which grid capacity improvements are authorized for construction.
Timeline
October 2026: MISO and SPP announced no projects would move forward.
Market Landscape
This development highlights a recurring tension in grid management where official evaluation criteria often fail to capture the full economic value of interregional connectivity. It underscores the gap identified in the Brattle Group report regarding how operators model project savings.
Operators in the Southern seam region should anticipate continued grid congestion and potential price volatility where transmission constraints remain unaddressed. Review your local utility's long-term infrastructure plans and monitor energy cost forecasts to adjust for potential future reliability risks.
The takeaway
The mismatch between grid planning models and actual economic benefit remains a significant hurdle for infrastructure growth. Operators should monitor future interregional planning updates and the Brattle Group's ongoing research to better forecast potential energy cost impacts.
Further reading
For more on how infrastructure decisions shape your operating environment, visit Utilities.
Source note: This article includes information reported by Energy Central.
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