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

Vermont panel debates siting solar power projects

07/28/2015

The panel will report back to the General Assembly with proposed legislation

E.On Solar builds its first facility in California

07/28/2015 E.On Solar also announced the sale of Alamo to Dominion, which makes Alamo the first U.S. solar project to be sold by the ...

Electric vehicles, smart grid get a boost from eMotorWerks charging stations

07/28/2015

The solution will provide scalable real-time data storage, real-time availability and streamlined data flows  

Report presents case for Wyoming wind power to California

07/28/2015

Wyoming's wind patterns tend to be opposite of those in California 

SkyPower to build 1 GW of solar energy projects in Kenya

07/28/2015

The $2.2 billion agreement was signed in Nairobi at the sixth annual Global Entrepreneurship Summit 

Hydro Ottawa selects Opower's demand response solution

07/28/2015

Hydro Ottawa chose Opower to help customers save energy and money during the summer’s hottest days 

Xcel Energy names corporate development leader, new treasurer

07/28/2015 Xcel Energy named George E. Tyson II senior vice president, corporate development — a newly established position 
FEATURED ENERGY JOBS
View more Job Listings >>

INDUSTRY STOCKS

ON DEMAND WEBCASTS

Solar + Storage: Capturing Opportunities and Overcoming Challenges

The convergence of solar and energy storage applications is under way. The combined application o...

Storage Enters the Global Stage: What’s the value proposition for your region?

For electricity storage, the events of the last two years have shown that the skepticism around t...

How to deploy mobile forms + devices to speed up field service processes & reporting

Overcoming the pain points associated with any process is much simpler and more cost effective th...

Beyond Integration: Three Dynamics Reshaping Renewables and the Grid

In a unique industry research initiative, DNV GL gathered views from over 1,600 energy sector par...

Engaging the Small and Mid-sized Business (SMB) Marketplace

This session will outline how Duke Energy leveraged Voice of Customer insights, previous experien...

EL&P BUYER'S GUIDE PRODUCTS

Cavitation Peening

AREVA developed its innovative solution for asset management, significantly extending the life of reactor components. Cavitation Peening is a perma...

Nuclear Horizontal Modular Storage (NUHOMS®)

AREVA TN’s NRC-licensed NUHOMS® system ensures the highest safety and lowest dose performance. With no tipping, tripping and sliding, you have the...

Decontamination & Decommissioning

Decommissioning strategy development, cost estimates, plant modifications; system and building decontamination; RV segmentation; large component re...

ATRIUM™ 11 for BWR Fuel

ATRIUM™ 11 design fuel – in operation since 2012 – provides significantly lower fuel rod power levels for power uprate margins, operational flexib...

POWERGRID PRODUCT LISTINGS

EtherMate® Industrial Ethernet - IO Modules

LioN-M ProfiNet device with 16 digital I/O channels, channels can be used universally as inputs or outputs, M12 socket, ro...

OFL280 FlexTester - Handheld OTDR

AFL's OFL280 FlexTester offers an unmatched combination of fiber test functions, ease-of-use, portability, and value.

ADSS Mini-Span® Fiber Optic Cable

AFL Mini-Span® All-Dielectric Self-Supporting (ADSS) cable is designed for outside plant aerial and duct applications in l...

TRM® 2.0 - Test Results Manager PC Analysis and Reporting

Test Results Manager 2.0 (TRM® 2.0) is an all-in-one analysis, viewer and reporting tool designed for use with NOYES fiber...

POWERGRID International

July 2015
Volume 20, Issue 7
1507pg_C1

ELECTRIC LIGHT & POWER

June 2015
Volume 93, Issue 3
1505ELP_C1