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(Reuters) – U.S. electric utilities expect to spend $1.4 trillion on power lines and other infrastructure-related costs over the next five years, raising concerns about rising power bills ahead for American homes and businesses, according to research released on Tuesday.
- Utilities’ five-year capital expenditure plans rose 20% from last year’s reported plans, said PowerLines, a nonprofit that advocates for utility reform, which authored the report.
- Regulated electric utilities can recover capital spending through sweeping rate increases, incentivizing spending, PowerLines said.
- “It is incumbent upon state policymakers and regulators to ensure utilities prioritize these solutions that improve the efficiency, affordability, and reliability of the grid,” said PowerLines Executive Director Charles Hua.
- Last year, utilities requested a record $31 billion in power rate increases, PowerLines said.
- PowerLines analyzed the investor earnings calls of more than 50 of the country’s electric utilities for its report.
- In their earnings reports, utility executives said rising electricity demand, an aging grid and extreme weather like wildfires and storms were the main causes for increased spending.
- The U.S. South accounted for the largest share of the planned capital spending, or about half the total amount through 2030. Half of the spending is geared towards grid investments, which includes power lines, 30% is for power generation and the rest was uncategorized.
- Hua said utilities should maximize the capacity of their existing systems before turning to capital spending.
Reporting by Laila Kearney in New York Editing by Nick Zieminski
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