Resource Adequacy Value of Interregional Transmission emphasizes the critical role interregional transmission can play in supporting resource adequacy and meeting growing electricity demand reliably and cost-effectively. Because every region has diverse resource mixes and demand that peaks at different times, interregional transmission enables neighbors to share resources more efficiently, enhancing grid reliability and lowering costs for customers—especially during extreme weather events.

Despite its proven benefits, the electric industry lacks a standardized method for calculating and crediting the capacity value of interregional transmission in resource adequacy assessments. Regulators and system planners should develop consistent valuation methodologies and planning structures to incentivize investment in interregional transmission.