- This paper presents a spectrally-weighted balanced truncation technique for RLC interconnects, a technique needed when the interconnect circuit parameters change as a result of variations in the manufacturing process. The salient features of this algorithm are the inclusion of parameter variations in the RLC interconnect, the guaranteed stability of the reduced transfer function, and the availability of provable frequencyweighted error bounds for the reduced-order system. This paper shows that the balanced truncation technique is an effective model-order reduction technique when variations in the circuit parameters are taken into consideration. Experimental results show that the new variational spectrally-weighted balanced truncation attains, on average, 20% more accuracy than the variational Krylov-subspace-based model-order reduction techniques while the run-time is also, on average, 5% faster.