WASHINGTON, D.C. — The U.S. Department of Energy will abandon three proposed National Interest Electric Transmission Corridors selected for further review in 2024, halting a federal designation process that could have affected transmission development around Lake Erie, the Southwest and tribal areas as the Trump administration reshapes national grid policy.
Energy Secretary Chris Wright said DOE will not proceed with the Lake Erie–Canada Corridor, Southwestern Grid Connector Corridor or Tribal Energy Access Corridor after reviewing public comments and stakeholder input.
The three proposals had been selected in December 2024 to advance through the NIETC review process. DOE said concerns emerged about the designation framework’s effectiveness in improving grid reliability and reducing electricity costs, as well as confusion in some communities about the scope of federal NIETC authority.
“Extensive review, including public feedback and stakeholder input, made clear that the current designation process for these three proposed transmission corridors should not continue,” Wright said.
The decision marks a reversal of the previous administration’s approach to the corridors, which DOE said had included using expanded transmission infrastructure to support decarbonization objectives.
While dropping the three proposed designations, the department is continuing to support transmission investment through loans and grant programs as electricity demand increases.
DOE in October 2025 closed a $1.6 billion loan guarantee to AEP Transmission to rebuild or reconductor nearly 5,000 miles of transmission lines across five states.
In February, the department closed $26.5 billion in loans to Southern Co. subsidiaries Georgia Power and Alabama Power for generation and grid investments, including more than 1,300 miles of transmission and grid-enhancement projects.
DOE followed in March with its $1.9 billion SPARK funding opportunity, aimed at increasing grid capacity and reliability.
In July, the department closed an approximately $3.3 billion loan to AEP Texas for construction, rebuilding or reconductoring of more than 2,800 miles of transmission lines.
DOE also released a draft 2026 National Transmission Needs Study in July identifying transmission requirements associated with growing electricity demand.
The department indicated that the decision on the three corridors aligns with President Donald Trump’s executive orders on domestic energy development and electric-grid reliability, as well as Wright’s February 2025 order establishing the administration’s energy policy priorities.
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