Electric Grid Reliability Requires Action in Washington

By Jamaica Gayle, Senior Director of Sustainability & Environmental Affairs

Modern corn refineries and other food manufacturing facilities are wonders of technology, productivity, and efficiency. Inside these facilities, many factors work in harmony to convert America's agricultural bounty into food fit for the nation's restaurants and grocery stores, from the well-maintained equipment inside the state-of-the-art facilities to the dedicated employees who show up to work every day to keep the nation fed.

But one critical factor often goes unnoticed until its interruption causes work to grind to a halt: these facilities rely on a strong, steady stream of electricity.

With electricity demand rising and older power plants set to retire, the U.S. must ensure it has enough power and a reliable grid capable of delivering it to the millions of homes and businesses that depend on it.

Grid Reliability is Essential

Power losses at food manufacturing facilities are more than inconveniences; they can trigger more than 24 hours of downtime as equipment is cleared of product that doesn't meet rigorous food safety requirements. Unscheduled shutdowns mean lost wages for workers and uncertainty for farmers who depend on stable markets.

Grid resilience is an important factor in affordability. Facilities with stable electricity will be able to maintain predictable operational costs, insulating companies and consumers from price shocks that could result from ebbs and flows of an unreliable power supply.

Dependable infrastructure, including roads, bridges, and a reliable power grid, is a key competitive advantage for U.S. manufacturing. Yet this infrastructure is increasingly at risk, with power outages already costing the American economy about $150 billion per year.

An unreliable power grid discourages the investments needed to strengthen America's food supply chain. The U.S. became a net food importer in 2023, and the Department of Agriculture expects that trend to continue. At the same time, unreliable electricity and rising energy costs present risks that could lead to food processing facility closures and place pressure on domestic production, U.S. food security, and affordability.

Grid Reliability is Under Stress

Power outages are an increasingly prevalent issue for American manufacturing facilities, causing unscheduled disruptions and costing valuable resources. The problem is only expected to present further challenges as more electricity demand comes online without corresponding investments in the nation's electric grid.

By 2036, summer peak demand nationwide is forecast to rise by over 224 GW, more than four times the current peak demand of the entire state of California. American investment in grid maintenance is falling behind. With more than 70% of transmission lines over 25 years old, failures are increasingly likely. Without upgrades, the Midwest could face a 9.5 GW shortfall by 2029, more than the output of nine large nuclear reactors.

NERC's 2025 Long-Term Reliability Assessment spotlights resource adequacy risks throughout the North American bulk power system over the next 10 years. Summer peak demand is forecast to grow more than 69% increase over the 2024 LTRA forecast. Find out more https://t.co/ZElThbUn6b pic.twitter.com/ItYOotDy1M

Grid Reliability Requires Policy Action

Decisive policy action today can reduce the risk of economic harm from an unreliable electric grid.

On Capitol Hill, lawmakers are advancing efforts to streamline permitting, including the Standardizing Permitting and Expediting Economic Development (SPEED) Act, a bipartisan permitting reform initiative passed by the House of Representatives. The Senate should follow suit. The need for timely permitting is clear: in 1942, a corn refinery in Washington, Indiana, was built in just one year to produce a rubber substitute amid supply disruptions during World War II battles in the Pacific. Today, even a minor modification to that same facility could take up to three years due to permitting requirements.

From the White House, President Donald Trump has established a pro-energy agenda that prioritizes domestic energy production and infrastructure development. He has issued executive orders aimed at removing regulatory barriers to energy development and strengthening the reliability and security of the nation's electric grid, particularly as electricity demand continues to grow. The administration's America's AI Action Plan further underscores this commitment by recognizing that a stronger electric grid is essential to support both new AI-driven industries and the broader economy. The plan calls for stabilizing today's grid, optimizing existing transmission, and speeding up the addition of reliable, dispatchable power. The Department of Energy also issued a report warning that blackouts could increase by 100 times by 2030 if reliable power sources continue to close without new firm capacity coming online. Building on existing efforts, the administration could mitigate these risks by modernizing transmission, improving coordination among regulators, reducing unnecessary barriers, and making grid resilience a core energy priority.

At the regulatory level, CRA joined with other agricultural and rural organizations to support major electric transmission projects designed to strengthen the nation's power grid. Canceling these projects, as some state officials are urging, could delay needed upgrades, increase electricity costs, and put reliable power at risk for farms, food producers, and rural communities. For these reasons, we are urging federal regulators to allow these projects to move forward without delay.

A reliable electric grid is essential for America's food supply, rural economies, and manufacturing competitiveness. The challenges are clear, and the solutions are within reach. Lawmakers, regulators, and the administration can act decisively to modernize the grid, expand transmission, and ensure every community and business has the power it needs. By prioritizing infrastructure investments and streamlining permitting, the U.S. can protect its food supply, support economic growth, and maintain global competitiveness.