U.S. T&D Kickoffs Aim to Boost Efficiency, Reduce Congestion

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Written by Will Ploch, Assistant Editor-in-Chief for IIR News Intelligence (Sugar Land, Texas)

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Summary

A spate of T&D projects set to kick off across the U.S. in the second quarter are among those possibly pushing prices higher for consumers, spurring efforts to curb costs and improve efficiency.

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More Infrastructure, Grid Space Needed

Utilities across the U.S. are mapping out expansions to transmission and distribution (T&D) capacities, as they work to buttress grid efficiency with a sturdier infrastructure. These new developments come as spiking T&D costs are hitting American consumers in their pocketbooks, highlighting concerns about affordability. Industrial Info is tracking more than $10.5 billion worth of U.S.-based T&D projects that are scheduled to begin construction in the second quarter of 2026, with Xcel Energy Incorporated leading in total investment value.

Xcel's most wide-ranging projects nearing construction include nearly 100 miles of upgrades to transmission lines in Minnesota and eastern South Dakota, which are part of the existing, 237-mile line from Brookings County, South Dakota, to Hampton, Minnesota. The company is installing a second high-voltage circuit on two segments: a 60-mile stretch from White, South Dakota, to Marshall, Minnesota, and a nearly 33-mile stretch from Hampton, Minnesota, to Belle Plaine, Minnesota. Xcel says the project will deliver more low-cost renewable energy to customers, while relieving congestion on the grid.

In addition to the new circuits, Xcel is performing upgrades to its substations in White, Marshall and Belle Plaine, which are set to be developed along the same schedule. Subscribers to Industrial Info's Global Market Intelligence (GMI) Power Project Database can learn more about the South Dakota-Minnesota developments--including capacities, investment values and necessary equipment--from detailed reports on the White-Marshall and Hampton-Belle Plaine lines, and the White, Marshall and Belle Plaine upgrades.

Other projects nearing construction in the area include ALLETE Incorporated's Duluth Loop Reliability Project, which is designed to add and enhance lines in and around Duluth and along the North Shore of Minnesota. The major component is a 14-mile line within Duluth that will link two existing substations. Subscribers can learn more from a detailed project report.

By the Numbers

• More than $10.5 billion: Value of U.S.-based T&D projects that are scheduled to begin construction in the second quarter
• Up to $1.9 billion: Funding set to be awarded under the DOE's SPARK program
• About $7.4 billion: Funding awarded under Biden's GRIP program over 2023-24

'SPARK' Could Bring Relief

Last week, the U.S. Department of Energy (DOE) announced up to $1.9 billion in funds "to accelerate urgently needed upgrades to the nation's power grid." Dubbed the Speed to Power through Accelerated Reconductoring and other Key Advanced Transmission Technology Upgrades (SPARK) program, it "will demonstrate how reconductoring--replacing existing power lines with higher‑capacity conductors--paired with other Advanced Transmission Technologies (ATTs) can expand grid capacity, increase operational efficiency, [and] lower prices for consumers," among other advantages, according to the DOE.

The SPARK program supplants the Biden era's Grid Resilience and Innovation Partnerships (GRIP) program, a 2023 effort to dole out up to $10.5 billion over five years. GRIP had awarded about $7.4 billion of that amount when Biden left office in early 2025.

SPARK is one of several efforts the Trump administration is making to address rising consumer costs, some of which is tied to energy bills. Earlier this month, executives from tech titans like Amazon, Google, Microsoft, OpenAI and others signed a "Ratepayer Protection Pledge" in a ceremony hosted at the White House, in which they agreed their companies would foot the bill for any increase in energy costs associated with data centers and other power-hungry facilities.

Exactly how the pledge would be enforced is yet unknown: It is non-binding, and the Trump administration has not offered any specifics on how residents living near data centers would be protected from price hikes.

Subscribers to Industrial Info's GMI Project Database can click here for a full list of detailed reports for U.S.-based T&D projects that are scheduled to begin construction in the second quarter of 2026.

Subscribers can click here for a full list of detailed reports for projects mentioned in this article and click here for a full list of related plant profiles.

Key Takeaways

• U.S. utilities are building out T&D capacity and infrastructure to address an increasingly crowded power grid.
• Spiking T&D costs are contributing to financial hardships for consumers across the U.S.
• The Trump administration is turning to mechanisms like the SPARK program and the Ratepayers Protection Pledge to assuage these concerns.

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About IIR News Intelligence
IIR News Intelligence is a trusted source of news for the industrial process and energy markets, powered by Industrial Info Resources' Global Market Intelligence (GMI).

About Industrial Info Resources
Industrial Info Resources (IIR News Intelligence) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 250,000 current and future projects worth $30.2 trillion (USD).