Electric power sector making record investments in transmission and distribution

Sponsored by

Investor-owned electric utilities and stand-alone transmission companies invested a record $34.9 billion in transmission and distribution infrastructure in 2012 according to new survey results released today by the Edison Electric Institute (EEI).

The industry’s capital expenditures on transmission totaled $14.8 billion in 2012 — a 23.9-percent increase over the $11.9 billion (nominal $) that the industry invested in 2011. The increase represents the largest year-on-year-percentage increase in transmission investment since 2000, which saw a 39.9-percent jump from 1999 levels.

Electric utilities attribute the increased transmission investment to several key factors, including the completion of large capacity transmission projects across the country and interconnection of new sources of generation (including renewable energy resources) onto the grid.

Projected transmission investment continues to climb in 2013 and includes storm hardening investment post-Superstorm Sandy. Although projected investments show a slight decline after 2013, due in part to the cyclical nature of transmission investment, the projected level of annual transmission investment remains significantly higher than previous periods.

The EEI survey also found investment on electric distribution infrastructure was 4.7-percent more in 2012 than the $19.2 billion invested in 2011, for a total of $20.1 billion. The increased capital expenditures were largely linked to storm restoration efforts, as well as the development of automated meter infrastructure (AMI) and other smart grid activities related to the distribution system.

“The electric power industry’s record level of investment demonstrates the industry’s commitment to ensuring that all electricity customers benefit from a safe, reliable, resilient, and robust electric grid,” said EEI President Tom Kuhn. “It is important that the industry continues to be able to earn a return on equity that is commensurate with the level or risk associated with these significant investments.”

Additional highlights from the EEI survey include:

  • After adjusting for increases in constructions costs, actual transmission expenditures increased 23.5-percent (2012 $) as compared to 2011 investment levels.
  • The level of industry transmission investment in 2012 is 160.5-percent higher than investment made in 2000 (after adjusting for cost increases). Over this same time period, the industry has made a cumulative investment of $113.3 billion in transmission.
  • Adjusting for a 3.2-percent increase in distribution-related construction costs in 2012, distribution investment increased 1.4-percent (2012 $) as compared to 2011 distribution investment levels.
  • Since the beginning of 2000, the industry has invested $275 billion (2012 $) in the nation’s distribution system.

Sponsored by

CURRENT ARTICLES

Western power grid can handle 7 GW of coal power retirements

09/22/2014 In June EPA published its rule proposal to have states draft implementation plans to cut CO2 emissions from the power sect...

Saft wins energy storage contract in California

09/22/2014  The lithium-ion (Li-ion) energy storage systems will be used to mitigate power fluctuations inherent with solar-gene...

Solar power trade group: Utilities lead way on community solar energy

09/22/2014 Community solar power projects are popping up across the U.S., offering those without the perfect rooftop solar installati...

FERC seeks comments on improved data reporting standard

09/22/2014

In addition, it redefines the terms 'demand side management' and 'total internal demand'

Governor: Montana can cut carbon emissions, keep jobs

09/22/2014 The White House goal of cutting greenhouse gas emissions by 30 percent by 2030 has generated a backlash in many coal-depen...

Mexico energy reform a credit positive

09/22/2014

The passage of the energy reform is unlikely to have a near-term impact on the sovereign ratings of Mexico 

Court OKs Entegra Power's Chapter 11 reorganization plan

09/22/2014 The plan approved by Judge Peter Walsh restructures and reduces the debt of those companies, allowing them to emerge intact

ON DEMAND WEBCASTS

3D BIM for Substations—Driving Efficiency from Design Through Operation and Maintenance

In this webinar, PESTECH will describe their transition to intelligent substation design and its ...

High Availability Networks. Application of IEC6439-3 Protocols for IEC61850 Process Bus implementation

Networks can now be built for the first time with genuinely uninterrupted data communication betw...

Understanding Moisture Dynamics in Power Transformers

While the need to measure moisture in power transformers has been well documented and is universa...

Regional Market Outlook for the WECC and ERCOT

Looking for an independent market outlook and analysis of the WECC and ERCOT power markets? ...

Streamline Utility Field Inspections to Improve System Reliability &  Customer Satisfaction

Arm your workers with solutions that improve productivity and customer satisfaction. Listen in an...

EL&P BUYER'S GUIDE PRODUCTS

MITEM Corp

Provides CRM solutions for regulated U.S. public utilities. The product, MitemView integrates differently designed systems to share critical data a...

Resources on Demand

Manages resource requests, tracks personnel movements, and supports lodging/logistics during a power restoration event.

Smart Grids

Quanta is contributing to its customers' smart grid initiatives by installing technology on power networks to provide energy management solutions f...

Horizontal Directional Drilling

With 28 small, mid-sized and large drilling rigs, Quanta Pipeline Services is one of the largest horizontal directional contractors in the world fo...

FEATURED ENERGY JOBS

View more Job Listings >>

POWERGRID International

March 2014
Volume 19, Issue 3
1403PG-cover

ELECTRIC LIGHT & POWER

January 2014
cover