For about a decade now, industry players and observers alike have been rather preoccupied with the condition of the "aging transmission infrastructure" in the U.S. For example, in the opinion of some, the 2003 blackout event in the United States and Canada exposed the vulnerabilities of the transmission system in North America. Even President Bush concluded that the delivery system was "old and antiquated". And the FERC stated that "underinvestment in the grid is a national problem."

The above is indeed supported by fact. For example, a survey by the Edison Electric Institute (EEI) shows that transmission investment declined in real dollar terms for 23 years, from 1975 to 1998, before increasing again, although investment for the most recent year available, 2003, is still below 1975 levels. Over the same time period, electric load more than doubled, resulting in a significant decrease in transmission capacity relative to load in every North American Electric Reliability Council region. Further, the EEI estimates that "… capital spending must increase by 25 percent, from $4 billion annually to $5 billion annually, to assure system reliability and to accommodate wholesale electric markets, and that the 2.5 percent growth rate in transmission mileage since 1999 is insufficient to meet the expected 50 percent growth in consumer demand for electricity over the next two decades."