Companies predict spending $1.4 trillion on electric grids and other infrastructure costs over the next five years, raising concerns of higher electricity bills for American households and businesses, according to a study released on Tuesday.
* Utility companies’ five-year investment spending plans have increased by 20% compared to last year’s declared plans, PowerLines, a non-profit organization advocating for utility company reform and the report’s author, said.
* Regulated utility companies can recover investment costs through general rate increases, encouraging them to spend, according to PowerLines.
* “State policymakers and regulators must ensure that utilities prioritize solutions that enhance network efficiency, accessibility, and reliability,” said Charles Hua, PowerLines’ executive director.
* Last year, utility companies requested a record $31 billion rate increase, PowerLines reported.
* For its report, PowerLines analyzed earnings calls from over 50 electric utility companies in the country.
* Utility executives in their earnings reports cited increasing electricity demand, an aging network, and extreme weather conditions like forest fires and storms as top reasons for rising expenses.
* The southern United States accounts for the largest share of planned investment spending, representing about half of the total amount until 2030. Half of the spending is dedicated to network investments, including power lines, 30% to electricity production, and the rest unspecified.
* Mr. Hua suggested that utility companies should maximize the capacity of their existing systems before turning to investment spending.
