DOE announces $5.25B plan to improve power grid and lower costs

COLUMBUS, Ohio (WSYX) — The U.S. Department of Energy announced Thursday a $5.25 billion plan to improve the nation’s electric grid and help lower electricity costs.

Deputy Energy Secretary James P. Danly made the announcement during a visit to Columbus. The money will fund 31 projects across 26 states. The federal government will provide $1.9 billion, while project recipients will contribute the remaining $3.35 billion. The State of Ohio is slated to receive $273 million of that pot.

“We are so appreciative of the Department of Energy for choosing Ohio,” said Jenifer French, Chair of the Public Utilities Commission of Ohio on Thursday. “As Ohio and the nation work to restore traditional domestic manufacturing and bring large loads onto the system, we need a strong and robust energy grid. Advanced transmission technologies can provide additional capacity to the system without requiring new build out, ensuring that we are responsibly and affordably enhancing in the grid.”

Secretary Danly said the department chose Ohio because it welcomes businesses to build in the state and engage in industry.

“The sign of a healthy economy is one in which you are constantly trying to meet the demand that’s rising, because that demand is the sign of all of those activities that require electricity. So why Ohio? Because Ohio has got a vibrant economy. It’s welcoming to people coming in and doing business here,” Danly said. “And the result of that is that they need electricity to get the job that they’re doing done.”

What will the money do?

The projects are designed to get more electricity through the power lines that are already in place.

The Energy Department says the work will upgrade more than 1,500 miles of transmission lines and add new technology across nearly 21,000 miles of the power grid.

“This is an extremely efficient use of both government and private capital,” Secretary Danly said.

“Energy is the economic driver for the 21st century,” State Rep. Adam Holmes said.

The goal is to make more electricity available without having to build as many brand-new transmission lines.

The department says the projects could make more than 23 gigawatts of additional electricity capacity available and improve reliability for about 100 million Americans.

When could electricity bills go down?

One of the biggest questions is when families could actually see lower electricity bills.

Danly said the projects will begin immediately and that the benefits could be seen as more electricity capacity becomes available and congestion on the grid is reduced.

“I think the entire suite of projects are scheduled to last 48 months for the entire program,” Danly added. “It’s going to be beginning immediately. As the congestion fees are relieved by more capacity put online, those values will be realized immediately.”

The plan focuses on improving existing power lines instead of always building new ones.

The Energy Department says that could help avoid the cost and long wait involved in building entirely new transmission lines.

“Our mission was clear, to ensure Ohio citizens have reliable, resilient, and affordable energy, because we knew these times were coming two and a half years ago,” Rep. Holmes added.

Officials also say the upgrades could make the power grid more reliable during severe weather and help reduce the risk of blackouts.

Ohio officials say improving the state’s power system is important as electricity demand continues to grow.

The projects are part of the Department of Energy’s SPARK initiative, which is funded through the federal Grid Resilience and Innovation Partnerships program.