SPEED Act Gives FERC Power to Greenlight Power Lines, Mandates Fair Cost Sharing for Consumers

The aptly named Streamlining Powerlines Essential to Electric Demand and Reliability Act of 2025 (or the SPEED Act) is all about accelerating how we build and upgrade the major electric transmission lines that keep the lights on and the internet running. This bill hands the Federal Energy Regulatory Commission (FERC) a major overhaul of its permitting process under the Federal Power Act, specifically focusing on projects that cross state lines. Essentially, FERC gets the green light to issue construction permits for these big power lines, but only if they can prove the project is truly in the national interest, reduces system bottlenecks, and significantly benefits consumers by improving reliability or cutting energy costs.

The Federal Fast Lane: Who’s Steering?

If you’ve ever tried to build anything major, you know the permitting process can be a nightmare of acronyms and overlapping jurisdictions. The SPEED Act attempts to fix this by setting FERC up as the primary traffic cop for federal approvals. This is designed to speed things up, but it also centralizes a lot of power. For projects on federal land managed by the Department of the Interior (think national forests or BLM land), Interior takes the lead, but the goal is the same: cut the red tape. The bill even sets an 18-month deadline for federal agencies to coordinate their efforts after the law is enacted, which is a rare and welcome sight in bureaucratic reform. However, this federal streamlining does raise questions about the balance of power, as it allows FERC to issue permits even if state processes are slow, potentially challenging the authority of state and local governments over their own land use decisions.

Your Electric Bill: Who Pays for the Upgrade?

This is the part that hits the wallet. When utilities build these massive new lines, someone has to pay for them. The SPEED Act includes a critical consumer protection measure: utilities must file a tariff with FERC to ensure that costs are allocated only to the customers who actually benefit from the new line. For instance, if a new line provides better access to cheaper power sources or significantly reduces outages in a specific region, only customers in that area should shoulder the cost. If you live in a different state and get zero benefit from the project, you can’t be forced to pay for it—unless, and this is the tricky part, you voluntarily agree to pay. This provision is designed to stop utilities from spreading the cost of localized upgrades across their entire customer base, but it introduces complexity in defining who benefits and by how much.

The Landowner Catch-22

For farmers, ranchers, and anyone living along the proposed route of a new power line, the bill is a mixed bag. The law mandates that FERC must actively take "landowner input" into account when deciding whether to authorize construction, defining this as feedback received after proper notification. This is a crucial nod to property rights. However, the bill is focused on accelerating construction in the national interest, which often involves the use of eminent domain. While your input is considered, the federal government’s ability to approve the project remains strong, meaning landowners may still face significant pressure to allow easements, even if their feedback is negative. This provision feels like a procedural requirement rather than a guarantee that property owners can stop a project deemed vital for national reliability.

Reliability vs. Reality

The bill hinges on the concept of “improved reliability,” which it defines as materially benefiting customers by meeting standards, cutting down on expected outages, or improving diversification against risks. This definition is broad enough to give FERC significant discretion. While the goal is to prevent blackouts and integrate cleaner, cheaper power sources, the vagueness means FERC has a lot of wiggle room to approve projects. Finally, a notable exclusion: the entire Texas ERCOT area is specifically excluded from these new federal permitting rules. So, if you live in Texas and rely on ERCOT, your grid upgrades will continue to be handled by the state, insulated from these new federal mandates and timelines.