US Energy Department Drops Plans for Three Proposed National Power Transmission Corridors

August 13, 2026
By Mintesinot Nigussie

The US Department of Energy has abandoned the designation process for three proposed national electric transmission corridors, saying the existing framework did not provide a sufficient basis for advancing the projects.

Energy Secretary Chris Wright said Wednesday that the department would not proceed with designating the Lake Erie–Canada Corridor, Southwestern Grid Connector Corridor and Tribal Energy Access Corridor, which had been selected by the previous administration in December 2024 to move forward in the review process.

"Transmission policy must serve the American people," Wright said, adding that public feedback and stakeholder input had shown that the current designation process should not continue.

The decision comes as the department pursues other investments in transmission infrastructure and grid capacity. In July, the department closed an approximately 3.3 billion US dollar loan to AEP Texas to build, rebuild or reconductor more than 2,800 miles of transmission lines.

The department also closed a 1.6 billion US dollar loan guarantee to AEP Transmission in October 2025 to rebuild and reconductor nearly 5,000 miles of transmission lines across five states.

In February 2026, the department provided 26.5 billion US dollars in loans to Southern Company subsidiaries Georgia Power and Alabama Power for generation and grid investments, including more than 1,300 miles of transmission and grid-enhancement projects.

The department announced a further 1.9 billion US dollar funding opportunity in March to increase grid capacity, reliability and affordability. In July, its Office of Electricity also released a draft 2026 National Transmission Needs Study identifying transmission requirements associated with rising electricity demand.

The three proposed corridors had been advanced under the previous administration as part of efforts to accelerate transmission development and support decarbonisation. The Energy Department said its review found that the existing designation framework had not demonstrated sufficient effectiveness in strengthening grid reliability or reducing electricity costs.

The department also said the process had generated confusion and concern in some communities over the scope and purpose of federal authority under the National Interest Electric Transmission Corridor framework.

The decision follows energy policy directives issued by the Trump administration, including executive orders on energy development and electric-grid reliability, as well as a February 2025 Secretarial Order on US energy dominance.

Source: FSX Business News