Interstate Transmission Act of 2005

The Interstate Transmission Act of 2005 (S. 498) was designed to modernize the nation’s electrical grid by encouraging investment in interstate power lines and improving the reliability of the bulk-power system. The bill would have directed federal regulators to offer financial incentives to utility companies that upgrade their equipment to reduce power congestion and join regional organizations that manage the flow of electricity across state lines. For everyday citizens, these measures were intended to lower the cost of delivered power and reduce the frequency of blackouts by creating a more efficient and stable national energy network. Additionally, the legislation sought to establish enforceable federal standards for grid reliability while protecting the ability of local utilities to prioritize service for their existing customers.