Bipartisan REWIRE Act Aims to Double US Grid Capacity by Upgrading Existing Power Lines Instead of Building New Ones
Senators McCormick and Welch introduce legislation to streamline reconductoring of existing transmission lines, projecting $180 billion in savings by 2050.
Overview
US Senators Dave McCormick (R-PA) and Peter Welch (D-VT) have introduced the Reconductoring Existing Wires for Infrastructure Reliability and Expansion (REWIRE) Act, bipartisan legislation designed to accelerate electric grid upgrades by replacing aging transmission wires with advanced conductors capable of doubling capacity. The bill targets what its sponsors call a growing mismatch between surging electricity demand and the pace of grid expansion.
After two decades of flat consumption, US electricity demand is projected to rise by as much as 5.7 percent by 2030, the fastest increase since the 1960s. The surge is driven largely by the proliferation of AI data centers, vehicle electrification, and reshoring of manufacturing. Yet only 322 miles of new high-voltage transmission were completed in 2024, a fraction of the roughly 5,000 miles needed annually to keep pace.
What We Know
The REWIRE Act centers on reconductoring, a process that swaps out conventional aluminum transmission cables for advanced composite-core conductors along existing rights-of-way. Because reconductoring uses the same towers and corridors, it avoids the land acquisition and multi-year environmental reviews that typically delay new transmission projects.
The bill’s key provisions include:
- NEPA categorical exclusions for projects that increase capacity within existing rights-of-way, covering reconductoring, grid-enhancing technologies, and co-located energy storage.
- FERC return-on-equity incentives directing the Federal Energy Regulatory Commission to improve return-on-equity calculations for reconductoring projects, making them more financially attractive to utilities.
- State-level feasibility funding authorizing State Energy Offices to use Department of Energy grants for reconductoring feasibility studies.
- Regional collaboratives establishing partnerships between the DOE, national laboratories, and universities to develop and deploy advanced transmission technologies.
- A national clearinghouse for best practices and real-world data on advanced conductor deployments.
According to estimates cited by the bill’s sponsors, reconductoring could reduce grid costs by $85 billion by 2035 and $180 billion by 2050 by relieving transmission congestion and reducing the need for entirely new corridors.
The legislation has drawn support from more than 25 organizations spanning the energy industry, including Siemens, CTC Global, the Solar Energy Industries Association, the Natural Resources Defense Council, PPL Corporation, and the American Clean Power Association.
What We Don’t Know
The bill must still navigate committee markups and floor votes in both chambers, and its timeline for passage remains unclear. Whether the NEPA categorical exclusions will survive scrutiny from environmental groups concerned about reduced review requirements is an open question. The legislation also does not address how reconductoring interacts with FERC’s recently finalized Order No. 1920, which imposes its own long-term transmission planning requirements on utilities.
It is also uncertain how quickly utilities would adopt reconductoring at scale even with improved incentives. Advanced conductors remain more expensive per mile than conventional aluminum cables, and workforce availability for the specialized installation process has not been widely assessed.
Analysis
The REWIRE Act reflects a broader recognition in Washington that the traditional approach to grid expansion, building new high-voltage lines from scratch, cannot keep pace with demand growth driven by AI infrastructure and electrification. Reconductoring offers a pragmatic middle path: it can be deployed in months rather than the decade or more that new transmission corridors typically require.
The bipartisan nature of the bill is notable in the current political environment. Senator McCormick framed the legislation as a commonsense fix that leverages existing infrastructure and stops unnecessary permitting delays. Senator Welch emphasized that accelerating reconductoring will connect affordable clean energy to the grid and save consumers money. The broad industry coalition backing the bill, spanning fossil fuel producers, clean energy advocates, and equipment manufacturers, suggests the approach has appeal across traditional energy policy divides.