Western RTO Economic Impact Study Region-Wide Analysis

Posted by Reports on Jul 26, 2022 2:21:06 PM

Publish Date: July 26, 2022

This report quantifies the economic benefits that might accrue to 11 Western states from a broad, West-wide organized electricity market known as regional transmission organization (RTO). It provides the total, combined economic impacts for the 11 Western states that were evaluated as part of this study effort.

Energy Strategies and Peterson & Associates prepared this report at the request of AEE to fill a research gap on the broader economic impacts that might result from the electricity cost savings and structural changes brought about by a potential RTO in the West. The analysis performed in this impact study, and forthcoming companion state-level economic impact result summaries, find that substantial economic benefits, including new jobs, new indirect business taxes, and increases to Gross Regional Product are likely to flow to the region if a Western RTO is established. 

Compared to the status quo, a Western RTO would by 2030:

  • Bring up to 657,000 new permanent, high-paying jobs to the West
  • Save Western households more than $1.4 billion per year from lower electricity costs
  • Raise annual gross state revenue across the West by up to $79 billion per year
  • Add up to 4,400 Megawatts of additional clean energy to the Western grid

The 11 states studied are: Arizona, California, Colorado, Idaho, Montana, Nevada, New Mexico, Oregon, Utah, Washington, and Wyoming.


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Topics: State Policy, Wholesale Markets, transmission