New Analysis Highlights the Electric Grid’s Essential Role in Supporting the U.S. Economy and National Security

New Analysis Highlights the Electric Grid’s Essential Role in Supporting the U.S. Economy and National Security

Report highlights the grid’s economic value, the importance of continued investment to strengthen resilience, and why integrating large new customers matters as electricity demand grows

WASHINGTON (June 01, 2026) — A new independent analysis conducted by Concentric Energy Advisors (Concentric) shows that the U.S. electric grid is a high-value national asset that supports the economy and national security by delivering the reliable power customers depend on every day. The report concludes that continued investment in a modern, interconnected grid—and thoughtful integration of large-load customers—will be essential to protecting those benefits as electricity demand grows. 

"The electric grid is one of the country’s most valuable assets and economic engines," said Drew Maloney, President and CEO of the Edison Electric Institute. "As electricity demand grows, we must continue investing in the grid to ensure it continues to deliver those benefits for customers, communities, and businesses across the country."

America’s electric companies are projected to invest $239 billion this year to make the grid smarter, stronger, and more reliable. These investments help ensure the grid can continue to power the energy of every day, while keeping electricity as affordable as possible for all customers. 

"The U.S. electric grid is a dynamic, continuously modernized system that underpins nearly every aspect of modern life," said Meredith Stone, Assistant Vice President at Concentric. "Our research makes clear that ongoing utility investment and integrated planning are fundamental to preserving reliability and enhancing resilience in the face of evolving demand."

 

 

The report’s key findings include: 

  • The U.S. electric grid is critical to our economy, national security, and modern life. The grid is the enabling platform for economic and national security by supplying reliable power to all sectors of the economy, including essential services such as defense, emergency response, water systems, and communications.
  • Utilities continue to invest steadily in the grid while prioritizing affordability for customers. Utilities are driving sustained investments in the grid that support reliability and the deployment of new technologies to help keep energy as affordable as possible for customers. By making system-wide improvements at scale, utilities can deliver these benefits more cost-effectively than through smaller, stand-alone projects. 
  • Utilities are leading the deployment of new technologies. These new grid-enhancing technologies (GETs) and other innovative solutions help utilities identify issues earlier, make better use of existing infrastructure, integrate new energy resources, and serve growing demand more efficiently, all while keeping the lights on and maintaining high levels of reliability for customers. 
  • New large customers should be connected to the grid. New large customers broaden the customer base over which fixed costs are recovered and support investment in advanced technologies that benefit all customers. Leveraging the existing grid also avoids costly, duplicative infrastructure. 
  • A modern, interconnected grid remains the most scalable platform for reliable power delivery. Paired with integrated utility planning, continued investment in the grid is a foundational enabler of U.S. economic growth and prosperity. Any efforts to reduce investment in the grid could jeopardize this economic engine. 

The report also highlights key data underscoring the importance of continued investment in the grid:  

  • Integrating large-load customers thoughtfully will help shape future costs and reliability for all customers. A recent Concentric analysis found that if large-load customers do not pay their share of fixed grid costs, the resulting nationwide cost shift to other customers could total between $120 billion and $169 billion over 30 years. 
  • Grid investments today save money for customers now and in the future. The National Laboratory of the Rockies determined that every dollar invested in transmission infrastructure saves customers $1.60-1.80 in future system costs. 
  • Investments in grid resilience pay dividends for the U.S. economy. Grid reliability and resilience are worth far more than the price we pay for electricity—rather, the grid’s value is reflected in the economic activity it supports. Investing in grid resilience helps reduce or avoid billions of dollars in economic losses that can result from major grid disruptions.     
  • Off-grid solutions require substantially more capacity than grid-connected options. To ensure reliability on their own, off-grid customers must build substantially more on-site generation and storage—often 70 percent or more above peak demand—than would be required if they were connected to the grid.  
  • The grid has remained strong and stable over time, with an average reliability factor of 99.95 percent, according to the National Laboratory of the Rockies. Approximately 80 percent of all reported outages between 2000 and 2023 were associated with major weather events.  

Read the full study here. Learn more about the work underway to strengthen the grid from America's leading experts here. 


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EEI is the association that represents all U.S. investor-owned electric companies. Our members provide safe, reliable electricity for nearly 250 million Americans, and operate in all 50 states and the District of Columbia. Collectively, the electric power industry supports more than 7 million jobs in communities across the United States and drives economic growth and prosperity. EEI also includes hundreds of industry suppliers and related organizations as Associate Members.