Watt it Means: Reconductoring
As power demand rises, more novel solutions are needed to ensure that energy demand meets supply. I believe there are numerous options that are not receiving proper attention due to knowledge gaps between the innovators, decision makers, and action takers. In an effort to bridge this gap, I’m starting a series titled “Watt it Means,” that will make complex topics simple and will explain the potential impacts across power sector stakeholders and data centers. Each post will summarize the present challenges, how the proposed solution helps, and what the topic means for key players.
If you have any questions or want to discuss this topic further, please reach out! I’m always happy to talk!
Note: these posts will assume a basic working knowledge of the power sector, but I will include links at the bottom of the article for folks starting at square one. The power sector is not as intimidating as it appears, if you would like more resources to learn about it please shoot me a message!
Watt it Means - Reconductoring
Reconductoring means replacing old existing transmission power lines with more modern lines called advanced conductors.
The Current Challenges
Transmission Constraints - Transmission grid infrastructure in the U.S. in some places is 20 years past its intended lifespan; it was already in need of replacement, but increasing power demand is accelerating that need. [1] The U.S. Department of Energy predicts that power demand in the U.S. will increase by 10-15% in the next decade, and the transmission grid is not ready. [2] Customers across the U.S. have seen their electricity bills rising and a key reason for this is transmission congestion. The transmission system of today is unable send sufficient power from where it is being produced to where it is needed most, this is resulting in what is called transmission congestion (also called transmission constraints). Transmission congestion in addition to increasing prices are leading to an increasing backlog of interconnection requests (i.e., wait times for connecting to the power grid) for both generation and new load (e.g., data centers). Transmission constraints are challenging to address as building a new transmission line can take upwards of 10 years and cost millions of dollars per mile. [2]
Slow Data Center Interconnection - Since the transmission system does not have capacity for the data centers, they are facing interconnection timelines of 3-7 years.[3] While data centers are now working to provide their own generation (known as Bring Your Own Energy (BYOE)), they still are seeking to connect to the grid for redundancy and for the potential sale of excess power. Data centers aren’t waiting around though, they are buying quick install generation assets (e.g., modified jet engines), to get the plants operating as soon as possible. But data centers require redundancy as even a brief outage can cost data center operators over $100k.[4] This results in data centers necessarily overbuilding for redundancy.
Slow Generation Interconnection - On the supply side of the equation, generators are also stuck in the interconnection cue. It is estimated that there are 2.2 terawatts of power and storage that are waiting to connect to the grid. [5] The problem is that a lot of the power is located far away from urban centers, meaning the transmission lines are unable to carry the power to the users without significant transmission improvements or new lines. Generators are now forced to wait nearly 5 years before their power is connected.[5]
How Reconductoring Helps
Reconductoring greatly reduces transmission constraints by increasing the power line’s capacity to transport electricity by 50% to 110%.[6] Reconductoring notably also decreases line loss, which is electricity that is lost while traveling across the power grid, it is estimated by the U.S. Energy Information Administration (EIA) that 5% of power in the U.S. is lost across transmission and distribution. [7] Reconductoring can lower line losses by 40%, meaning that more of the power produced actually makes it to homes and businesses. [8] The increase in capacity also means that both generators and data centers would be able to connect to the grid faster.
Since reconductoring makes use of existing transmission towers, the permitting process is significantly swifter with reconductoring being possible in a matter of just 1.5 to 3 years.[6] From a cost perspective, reconductoring is about half as expensive as building new lines. While some substation upgrades will be necessary to account for the increase in power flow, it is minimal when compared to the value of the increase in power transportation and new assets that could connect to the grid.
Watt it Means for:
Data Centers – Reconductoring would decrease grid interconnection timelines and lower electricity prices for data centers by reducing the need for expensive excess back-up generation. Google is already aware of the potential of reconductoring, as reflected by their purchase of CTC Global in 2025.[9]
Customers – The addition of generation to the grid and reductions in line loss would result in lower electric bills. American Electric Power (AEP) Transmission conducted a reconductoring case study in Texas; from 2014-2015 alone the new line resulted in savings of $43.4 million.[10]
Utilities / Transmission Owners – Reconductoring represents a proven method for improving both long-term transmission planning and integrated resource planning. From a customer rate impact perspective, the construction costs would be swiftly outweighed by the savings generated from improvements in capacity and reductions in line loss. Additionally, the U.S. Office of Energy Dominance Financing (EDF) in October 2025 closed on a loan to AEP Transmission for $1.6 billion to reconductor or rebuild nearly 5,000 miles of transmission line across 5 states. [10] There is clear federal support for reconductoring, meaning that obtaining a determination from the state public utility commissions (PUCs) that reconductoring is both used and useful will not be a difficult undertaking.
PUCs – Reconductoring represents a relatively quick win to minimize data center impact on consumers, improve customer electric bills, and keep utility investors satisfied. The Federal Energy Regulatory Commission (FERC) has already led the way in requiring transmission owners with lines that span across multiple states to consider reconductoring as an option in their long-term planning (FERC Order 1920). But FERC does not have jurisdiction over transmission cables that reside within a state, so the regulatory power to drive reconductoring forward rests on the shoulders of the PUCs.
Sources
1. Americans for a Clean Energy Grid. “Transmission 101.” Factsheet. Washington, DC: Americans for a Clean Energy Grid, 2023. https://cleanenergygrid.org/wp-content/uploads/2023/05/Transmission_101_Factsheet_2023.pdf.
2. U.S. Department of Energy, Office of Electricity. “Clean Energy Resources to Meet Data Center Electricity Demand.” U.S. Department of Energy. Last modified 2024. https://www.energy.gov/oe/clean-energy-resources-meet-data-center-electricity-demand.
3. Petersen, Alisa, Katie Siegner, and John Coequyt. “The Interconnection Queue Continues to Be a Barrier to American Economic Competitiveness.” RMI, March 17, 2026. https://rmi.org/interconnection-reform-ai-data-centers-generator-queues/.
4. Donnellan, Douglas, and Andy Lawrence. “Annual Outage Analysis 2024.” Keynote Report 131. New York: Uptime Institute, March 27, 2024. https://intelligence.uptimeinstitute.com/resource/annual-outage-analysis-2024.
5. Rand, Joseph, Rose Strauss, Will Gorman, Joachim Seel, Julie Mulvaney Kemp, Seongeun Jeong, Dana Robson, and Ryan Wiser. “Queued Up: Characteristics of Power Plants Seeking Transmission Interconnection.” Lawrence Berkeley National Laboratory, 2024. https://emp.lbl.gov/queues.
6. Chojkiewicz, Emilia, Umed Paliwal, Nikit Abhyankar, Casey Baker, Ric O’Connell, Duncan Callaway, and Amol Phadke. “Reconductoring with Advanced Conductors Can Accelerate the Rapid Transmission Expansion Required for a Clean Grid.” GridLab / 2035 Report, April 2024. https://www.2035report.com/wp-content/uploads/2024/04/GridLab_2035-Reconductoring-Technical-Report.pdf.
7. U.S. Energy Information Administration. “How Much Electricity Is Lost in Electricity Transmission and Distribution in the United States?” Frequently Asked Questions. Last modified November 7, 2023. https://www.eia.gov/tools/faqs/faq.php?id=105&t=3.
8. Singh, Aastha. “Reconductoring: The Path of Least Resistance to Fixing the U.S. Energy Grid.” Environmental and Energy Study Institute, March 24, 2026. https://www.eesi.org/articles/view/reconductoring-the-path-of-least-resistance-to-fixing-the-u.s-energy-grid.
9. CTC Global Corporation. “Google and CTC Global Announce Initiative to Expand American Electric Grid and Transmission Capacity, U.S. Supply Chain with Advanced Conductors.” Business Wire, June 17, 2025. https://www.businesswire.com/news/home/20250617507388/en/Google-and-CTC-Global-Announce-Initiative-to-Expand-American-Electric-Grid-and-Transmission-Capacity-U.S.-Supply-Chain-with-Advanced-Conductors.
10. Berger, James. “AEP Advanced Conductor Case Study.” Presentation. World Bank, November 5, 2025. https://thedocs.worldbank.org/en/doc/5bb4f697407861a48e4e348240ebb9d1-0450012025/original/2025-11-05-AEP-Advanced-Conductor-Case-Study-James-Berger.pdf.
Starting from Square One?
· Basic introduction to the power grid - https://www.eia.gov/energyexplained/electricity/delivery-to-consumers.php
· Transmission constraints explained - https://www.nrg.com/insights/energy-education/transmission-congestion---constraints.html