The Connect the Grid Act of 2024 seeks to strengthen the U.S. electric grid by requiring the Electric Reliability Council of Texas (ERCOT) to interconnect with neighboring power grids operated by the Southwest Power Pool, Midcontinent Independent System Operator, and the Western Interconnection. The bill removes ERCOT's current exemption from federal energy regulation and requires these grid operators to develop plans by 2035 to increase transmission capacity between regions, with specific minimum transfer capacity targets ranging from roughly 2.5 to 16.2 gigawatts depending on the connection. To finance this expansion, the bill increases borrowing authority under the Transmission Facilitation Program from $2.5 billion to $13.5 billion. The legislation prioritizes using grid-enhancing technologies, existing rights-of-way, and degraded lands for construction while requiring meaningful community engagement, prevailing wages, and registered apprenticeship programs for workers on these projects. Additionally, the bill requires the Department of Energy to study the benefits of connecting U.S. and Mexican power systems.
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