High Level

This week, transmission policy and project governance came under intensified scrutiny. A coalition of state regulators urged FERC to revise or end its longstanding RTO Participation Adder, arguing that utilities no longer need indefinite bonuses to join transmission organizations. Meanwhile, Missouri’s Attorney General launched an investigation into Invenergy’s Grain Belt Express project, questioning whether the developer misrepresented economic and land-use benefits. Together, these developments reflect growing pressure to align transmission expansion with fairness, transparency, and political resilience.

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State Regulators Push FERC to Limit RTO Participation Adder Return

·       What happened: More than 35 state regulatory agencies—organized through the Organization of MISO States (OMS), OPSI, NESCOE, and SPP’s Regional State Committee—filed a joint letter asking FERC to modify or eliminate the 0.5% return on equity (ROE) bonus awarded to utilities for joining Regional Transmission Organizations.

·       Who did it: State commissioners representing multistate regulatory coalitions across MISO, PJM, ISO-NE, and SPP regions.

·       Why they did it: The coalition argued that the adder is no longer necessary, citing its automatic renewal, lack of performance conditions, and estimated cost burdens on ratepayers.

·       Stakeholder views: The joint filing said, “The time has come for the Commission to eliminate its policy of granting the RTO Participation Adder in perpetuity.” FERC Chair Willie Phillips and Commissioner Mark Christie have both expressed openness to limiting or restructuring the bonus.

·       What happens next: FERC is reviewing the comments and may issue a Notice of Proposed Rulemaking (NOPR) to reform the incentive. Potential changes include time limits or performance-based eligibility.

Utility Dive, June 30, 2025

Missouri AG Investigates Grain Belt Express Transmission Line Project

·       What happened: Missouri Attorney General Andrew Bailey launched a formal investigation into the Grain Belt Express transmission line, issuing a civil investigative demand for documents related to its public benefit claims.

·       Who did it: The Missouri Attorney General’s Office, under AG Andrew Bailey.

·       Why they did it: The AG alleged that Invenergy, the project’s developer, misled Missourians about job creation, economic returns, and property impacts in order to secure public and regulatory support.

·       Stakeholder views:

•         AG Bailey said, “We will not allow a private corporation to trample property rights and mislead regulators for a bait and switch that serves out-of-state interests.”

•         An Invenergy spokesperson responded, “It’s irresponsible for the AG to use untruths… Grain Belt Express is the largest single private transmission investment in U.S. history,” and will “deliver billions in energy cost savings.”

•         U.S. Sen. Josh Hawley (R-MO) called the project a “Green New Deal boondoggle.”

·       What happens next: The AG’s office will review the submitted materials. Legal action could follow, and the Missouri PSC may revisit its prior siting approvals.

Missouri AG, July 2, 2025
Missourinet, July 2, 2025
Fox Business, May 28, 2025

What’s the So What?

This week’s developments highlight the increasingly complex reality that transmission projects are judged not only on technical merit and regulatory approval, but also on political optics and community alignment.

State regulators’ push to reevaluate the RTO Participation Adder signals growing scrutiny of transmission economics. If FERC acts, it could help rebalance incentives in favor of accountable, performance-based grid investments.

But it is the Missouri Attorney General’s investigation into Grain Belt Express that most clearly illustrates the shifting terrain. While property rights and public benefit claims are valid points of inquiry, the overtly political framing by Senator Hawley suggests the scrutiny is at least partially ideologically driven. That’s troubling, especially given the bipartisan necessity of modern transmission for all energy types, from conventional to renewables, and its clear relevance to national security and long-term economic resilience.

The deeper lesson here is not that scrutiny is new. Large transmission projects and even small 1 MW solar farms have always faced NIMBY opposition and legal resistance. The lesson here is that today’s political environment is amplifying those tensions. In this context, technical readiness and regulatory approvals are necessary, but no longer sufficient. Developers must expect, and prepare for, politically motivated challenges.

That means having airtight public claims, well-documented community benefit plans, and an active, respectful stakeholder engagement strategy. Invenergy’s firm response underscores the stakes, but a more visible commitment to ongoing local engagement could bolster its position and set a model for other national-scale developers.

Ultimately, success in building the grid we need will depend not just on steel in the ground, but on trust in the process. And in an era of heightened polarization, that trust must be earned project by project.

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