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

Axion Power to supply energy storage for 9.1 MW Pennsylvania solar farm

10/30/2014 Axion Power PbC PowerCube technology has been admitted to connect with the 13-state PJM power grid, and brings that certif...

Guam to build $589 million power plant to comply with regulations

10/30/2014

The plant is expected to provide more than three-quarters of the island's power needs by 2020

SunEdison to install 150 MW in solar power projects in India

10/30/2014

Following SunEdison's recent announcement of a memorandum of understanding for 5 GW with the Rajasthan government

EU close to reaching emission-cutting goals

10/30/2014

That goal is to reduce emissions of CO2 and other greenhouse gases by 20 percent compared to 1990 levels.

MidAmerican Energy contracts with Siemens for Iowa wind power projects

10/30/2014 Combined, these 12 wind power projects have a capacity of more than 2.2 GW, enough to provide about 665,000 average Iowa h...

RWE connects solar farm to U.K. power grid

10/30/2014

The solar park has been constructed and commissioned by global downstream company Conergy 

Power4Georgians gets 18-month extension on coal plant air permit

10/29/2014 The extension will give Power4Georgians time to determine if or how Plant Washington will be affected by that CO2 rule

ON DEMAND WEBCASTS

Architecting Communication Networks for Smart Grids

This webinar will provide the essentials of communication networking to meet the challenges of th...

The Power of Behavioral Design: Lessons for Energy Efficiency Providers

Behavioral design principles are key differentiators when it comes to influencing consumer behavi...

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...

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