Utah and Indiana Address Energy Demand With Laws to Modernize Grid

Courtesy of LineVision

To meet rising electricity demand—which is surging throughout the U.S. because of factors such as population growth, more data centers, and expanding manufacturing—states need near-term solutions. One is to unlock additional capacity from their existing grid infrastructures.  A growing number of states are doing this by encouraging the deployment of advanced transmission technologies (ATTs)—software and hardware that allow transmission lines to carry more electricity.

Utah and Indiana recently joined that list, with each passing bipartisan legislation this year with unanimous legislative support and backing from diverse coalitions of stakeholders, including utilities, manufacturers, clean energy groups, and ratepayer advocates.

ATTs include grid-enhancing technologies such as dynamic line ratings, which use sensors to calculate how much electric should flow on a line based on real-time conditions, or high-performance transmission wires, known as advanced conductors, which can carry 50% to 110% more power than conventional lines.

In the longer term, states will need new high-voltage transmission lines, but permitting and installation of those can take 10 years, on average, to complete. By contrast, ATTs can be installed on existing transmission structures, typically within three months to three years.

In just the past two years, at least 10 states have passed legislation encouraging ATT deployment, a number that continues to grow in 2025—a trend that will accelerate grid modernization.

Utah: Planning for a smarter grid

The legislation in Utah, signed into law by Governor Spencer Cox (R) on March 25, requires electric utilities to include in their grid planning an evaluation of the benefits and deployment timelines of ATTs. The new law also directs the state’s Public Service Commission to encourage the use of ATTs and, if shown to be cost-effective, approve the utilities’ recovery of costs for ATT investments.

Bill sponsor Representative Christine Watkins (R) said, “Energy demand is rising, which is why we need reliable, affordable transmission solutions that we can deploy now … and advanced transmission technologies are the low-hanging fruit to get more energy out of the grid we already have.”

Photo by Utah Office of the Governor

Indiana: Studying and scaling ATT solutions

Days later, on March 31, Indiana Governor Mike Braun (R) signed into law a bill requiring utilities to evaluate and report on ATT investments through the state’s grid-planning process; the law also directs the state’s Utility Regulatory Commission to conduct a study on the statewide benefits of ATT deployment. And, as in Utah, if Indiana’s utilities’ plans are shown to be cost-effective, the commission can approve the recovery of costs for the investment.

This approach reflects Indiana officials’ growing urgency to address grid congestion and the interconnection queue—a backlog of energy projects and storage capacity that cannot come on to the existing grid because of capacity constraints. 

The area of the country serviced by the Midcontinent Independent System Operator, the electric grid operator for the central United States, saw $8.3 billion in congestion costs from 2021 to 2023 and has more than 300 gigawatts of energy projects waiting to connect to the grid. By accelerating ATT deployment, Indiana is acting to meet demand while lowering costs and improving reliability.

State policy momentum

Other states considering legislation to encourage ATTs include North Carolina, Ohio, and South Carolina, with proposals ranging from studies and utility planning requirements to streamlined permitting and rate recovering mechanisms. Taken together, these efforts signal a shift in how states are addressing the country’s growing energy needs: with pragmatic, bipartisan, near-term strategies that deliver results.

The role of policy in grid modernization

According to the U.S. Department of Energy, nationwide deployment could unlock up to 100 gigawatts of additional grid capacity and save consumers $35 billion by reducing bottlenecks that are constraining the grid. Advanced conductors alone could save $85 billion in system costs over the next 10 years.

By adopting legislation that encourages ATT deployment, Utah and Indiana show how states can rise to the challenge of grid modernization through smart policy that drives infrastructure innovation. As other states consider their own approaches, these two states provide compelling models: prioritize quick-to-deploy, cost-effective technologies, build broad coalitions of support, and ensure that utilities have clear guidance and incentives. With rising demand and high stakes for energy reliability, states that act now on transmission innovation will be best positioned for the future.  

Carter Harms works on The Pew Charitable Trusts’ energy modernization project.