Winter Storm Fern Highlights the Need for More Resilient Transmission

How stronger transmission and modernizing the grid could reduce outages, lower costs, and protect communities during extreme weather.

Winter Storm Fern swept across the United States this past week dumping snow and ice and wreaking havoc from Arizona to Washington, D.C. In addition to the tragic loss of life, almost 1 million people lost power, some of whom are still without power, creating difficult and dangerous living conditions, and costing families, utilities, and states a lot of money. During a particularly strained hour on the afternoon of January 25^th, prices in one zone topped $1,800 per megawatt-hour — an order of magnitude higher than average prices during the weeks before the storm. Unfortunately, extreme weather events are becoming more common (and more extreme).

How can we better prepare for the next big storm? In a few ways. Strengthening electricity infrastructure and enabling more interconnected transmission infrastructure could have helped reduce both outages and costs. And, on the customer side, improving the efficiency of housing can relieve both grid and cost stress. Updating homes to just a 2009 building code can keep them above 40 degrees Fahrenheit for nearly two days in sub-zero temperatures.

Below, we dive into how our grid can evolve to make the next “Fern” less impactful.

Sharing electricity across regions

The US grid is made up of geographically distinct transmission planning regions that share power with each other when necessary. For example, if there is low energy availability or high-priced electricity in one region, it can be supplemented with lower-priced available energy from a neighboring region.

During Fern, neighboring regions supported each other wherever possible. When one area had excess electricity, it sent power to other regions facing shortages — but only up to a point.

Power sharing is limited by contractual and infrastructure constraints. Transmission lines, like water pipes, restrict how much electricity can move between regions. So even if one area has surplus power, insufficient transmission capacity often keeps it from reaching places in need.

Research shows that just increasing the efficiency with which we utilize existing lines can save hundreds of millions of dollars per year. Beyond that, more interregional transmission planning and buildout is necessary to increase system-wide reliability while meeting needs more cost-effectively.

Transmission constraints drive huge price differences

When transmission is constrained and regions cannot share power, electricity prices can vary drastically, even within the same grid.

For example, MISO, the transmission organization that covers parts of 15 states in the Midwest and South, is made up of three different regions: north, central, and south. In the beginning of Fern, cold temperatures and low wind speeds in the northern states made wind power production plummet and constrained gas availability. Meanwhile, their southern MISO counterparts and neighbors in SPP were flush with higher wind generation than expected and a less constrained gas system. As a result, MISO north customers were left paying much higher prices (2 to 15 times as much at times) than their neighbors.

More transmission capacity between these regions could have allowed lower-cost power to serve more customers, providing relief for ratepayers. Similarly, in PJM, which primarily covers states in the Mid-Atlantic region, the limits on transmission availability meant that some customers were paying much higher prices than others. And in Texas, on January 25, average electricity prices between the northern and southern parts of the state differed by more than $700 per megawatt-hour in the real-time market.

More interregional and intraregional transmission availability could have helped keep prices down for customers. To increase the ability to share power across regions, we need to increase transmission capability on existing lines and plan and build new interregional lines to enable more power sharing.

Strengthening electricity infrastructure

The ice that Fern brought damaged and downed some power lines as well. Initial damage assessments show over 470 miles of affected transmission lines, leaving hundreds of thousands of people without power. This was especially damaging in southern states, where the cold temperatures pushed the electricity infrastructure past its limits.

Hardening transmission and distribution infrastructure, for example by using advanced conductors with anti-icing coatings and real-time monitoring sensors, not only protects lines from extreme cold but also boosts grid capacity overall. These upgrades help reroute power and ensure reliable power delivery during increasingly severe and prolonged storms, reducing the need for repeated fixes (as experienced by crews working through ongoing hazards to restore power in Middle Tennessee Electric territory). Finally, strategic undergrounding, though more costly up-front, can further safeguard lines from extreme weather and limit recurring repair expenditures on the same infrastructure.

A grid that works better — in calm and crisis

Winter Storm Fern made one thing clear: the power system we rely on every day is being pushed beyond the conditions it was designed to handle. As extreme weather becomes more frequent, more intense, and more geographically widespread, the costs of outages — in lost power, lost lives, and lost economic activity — will only grow.

A more resilient grid requires both stronger transmission and smarter planning. Regulators play a central role in making this possible by supporting both planned and new transmission expansion and upgrades that deliver broad reliability and cost benefits, including projects that improve interregional power sharing. Legislators can also encourage grid modernization technologies that increase capacity on existing lines as well as threat awareness and responsiveness. And it’s important to take a long-term view of costs, recognizing that investments that reduce outages and price spikes can save customers and utilities money over time.

Likewise, improving home energy efficiency can reduce overall demand on the grid, lower customer bills, and help homes maintain safe indoor temperatures for longer during outages.

Inaction has a cost. Investing now in stronger, more interconnected, and more resilient transmission can help ensure the power system works not just on clear days — but when communities need it most.