U.S. T&D Capacity Set for Up to $9 Billion of Investment

Researched by Industrial Info Resources (Sugar Land, Texas)--The U.S. is seeing more demand for transmission and distribution (T&D) capacity, and not just in the usual areas in and around large cities: Some of the strongest growth is in Midwestern states, particularly those where tech companies are investing in data centers and production facilities. Industrial Info is tracking nearly $9 billion worth of T&D projects that are set to kick off before the end of this quarter, about half of which is attributed to projects with a high probability (81% or more) of beginning construction as planned.

Click on the image at right for a graph detailing the top 10 parent companies for U.S. T&D projects set to begin construction from January through March, by total investment value.

American Electric Power Company Incorporated (NASDAQ:AEP) (AEP) (Columbus, Ohio) is growing its customer base, partly through new data-center customers in states like Indiana and Ohio. At the Deer Creek Substation in Marion, Indiana, AEP is preparing to kick off two overhead-line rebuilding projects: a 21-mile stretch from Marion to Frankton and an 18-mile stretch from Marion to Hartford City. The company also is preparing to construct the Green Chapel Substation in Johnstown, Ohio, with two to three miles of related transmission line.

Subscribers to Industrial Info's Global Market Intelligence (GMI) Power Project and Plant databases can read detailed reports on the Marion-to-Frankton, Marion-to-Hartford City and Green Chapel Substation projects, and read detailed plant profiles on the Deer Creek Substation and Green Chapel Substation.

"Our robust capital-investment plan includes $16 billion for transmission and $11.3 billion in distribution to continue to modernize the grid, increase reliability, integrate renewable resources and build infrastructure for new customers," said Julie Sloat, the chief executive officer of AEP, in a press release. "We have a significant pipeline of opportunities to invest in our wires infrastructure, as we upgrade the system to benefit customers."

AEP also has a large number of T&D projects across Texas, driven by sharp industrial growth along the Gulf Coast and in the state's prosperous shale plays. For more information, see November 3, 2023, article - AEP Ramps Up T&D Projects in High-Growth Areas, Adds Renewables.

California also is experiencing heavy load growth, and the Lassen Municipal Utility District is responding with the Skedaddle Interconnection Project, which the utility calls "the largest, most ambitious, and most significant project" in its history. The new Skedaddle Substation in Susanville, California, and Shaffer and Antola substations in Wendel, California, will help to bring in load from Nevada's power grid to the utility's service area, aided in part by the construction of a five-mile line from Susanville to Wendel. Subscribers can read detailed reports on the Skedaddle, Shaffer and Antola substations, and the Susanville-to-Wendel line.

Another Midwestern state is preparing for expected load growth with a 22-mile line from the Valley View Substation near Bloomsdale, Missouri, to the Salem Bulk Substation in Farmington, Missouri. Ameren Corporation (NYSE:AEE) (St. Louis, Missouri) is working with a cooperative, the Wabash Valley Power Alliance, to improve capacity and reliability in the area. Subscribers can learn more from a detailed project report.

Florida is seeing increased demand for T&D capacity, and the Orlando Utilities Commission is responding with a 12-mile line from Orlando to St. Cloud, Florida. The line, which is currently set to wrap up in mid-2025, is part of the broader Orlando/St. Cloud Regional Resiliency Connection, much of which started construction in early 2023. Subscribers can learn more from a detailed project report.

In mid-2022, Pattern Energy Group LP (San Francisco, California) acquired the SunZia Transmission project from SouthWestern Power Group, a subsidiary of MMR Group Incorporated (Baton Rouge, Louisiana). Pattern is preparing to begin construction on its SunZia Transmission and SunZia Wind projects, billing them as the largest clean energy infrastructure project in U.S. history. For more information, see January 2, 2024, article - Pattern Energy Secures $11 Billion for SunZia Windfarm, Transmission Projects.

Subscribers to Industrial Info's GMI Project Database can click here for a full list of detailed reports for projects mentioned in this article, and click here for a full list of related plant profiles.

Subscribers can click here for a full list of reports for U.S. T&D projects that are set to kick off before the end of this quarter.

Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) platform helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 trillion (USD).