London Economics International LLC (LEI) conducted this comprehensive analysis of two hypothetical, inter-regional transmission projects in two separate locations in the United States by utilizing the REMI PI+ model. The two projects were chosen to reflect common commercial drivers for transmission investments, which included accommodating delivery of lower cost and cleaner energy resources to consumers and increasing market efficiency through additional trade of electricity. LEI implemented the PI+ model into this evaluation to calculate how infrastructure spending and electricity cost savings impact local employment and regional economies, as well as how local spending for the construction and installation of new power infrastructure and the electricity cost savings from said infrastructure impact the broader economy. The benefits from both hypothetical projects (Eastern Interconnect & Western Interconnect) were quantified and categorized into short-, medium-, and long-term benefits in order to accurately display the ways in which well-conceived transmission can provide quantifiable, substantial, widespread, and long-lasting impacts.
London Economics International LLC – How Does Electric Transmission Benefit You?: Identifying and Measuring the Life-Cycle Benefits of Infrastructure Investment [full PDF]