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Released May 28, 2021 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--Across the U.S., major utilities are investing more in adding and improving their electric distribution systems, according to the U.S. Energy Information Administration (EIA), including a record $57.4 billion in 2019. These investments are outpacing customer growth and retail sales, as utilities are increasingly focused on replacing outdated equipment and fortifying distribution structures against weather-related damage. And the buildout continues: Industrial Info is tracking more than $4.3 billion worth of transmission and distribution (T&D) projects that are slated to kick off across the U.S. in third-quarter 2021, more than $2.8 billion of which is attributed to projects in the Midwestern and Southwestern regions.
Click on the image at right for a map from Industrial Info's Geolocator tool of U.S. T&D projects set to begin construction in third-quarter 2021.
The EIA defines distribution as the final stage in delivering electricity to homes and businesses via a high-voltage transmission system. More than half of the $57.4 billion invested in 2019 went toward capital-spending projects to replace, modernize and expand existing infrastructure, ranging from neighborhood power lines to substations that manage capacity, according to the EIA.
About 40% of 2019's capital spending went toward power lines, both underground (23% of the total) and overhead (17%).
Looking ahead, the highest-valued T&D projects set to begin construction in the third quarter of 2021 is a $90 million line from Montfort to Middleton, Wisconsin. It is part of a broader effort by American Transmission Company LLC (ATC) (Pewaukee, Wisconsin), which is majority-owned by WEC Energy Group Incorporated (NYSE:WEC) (Milwaukee, Wisconsin), to bolster transmission across roughly 100 miles of Wisconsin and Iowa. Subscribers to Industrial Info's Global Market Intelligence (GMI) Power Project Database can click here for a detailed project report.
Construction of the Montfort-Middleton line is not guaranteed. Opponents allege one of the three regulators on the Public Service Commission who approved it had a conflict of interest, and a Dane County judge recently said he would revoke the permit if the allegation can be proven, according to the Wisconsin State Journal. Opponents have until the end of August to prove interactions with one of the project's owners tainted one commissioner's approval of the line, according to the Journal.
Public Service Company of Colorado, a subsidiary of Xcel Energy Incorporated (NASDAQ:XEL) (Minneapolis, Minnesota), is preparing to begin construction on a $54 million line from Littleton to Denver, Colorado, running 15.4 miles from Xcel's Greenwood and Denver Terminal substations. The utility aims to bolster capacity from 115 kilovolts (kV) to 230 kV. Subscribers can learn more from Industrial Info's project report.
Xcel recently requested approval for a transmission expansion plan in Colorado. In addition to its existing projects, Xcel aims "to build 560 miles of 345-kV transmission lines, creating a backbone that will enable 5,500 megawatts of incremental renewables and help Colorado achieve its 2030 carbon reduction goals," said Ben Fowke, the chief executive officer of Xcel, in a recent quarterly earnings-related conference call. "The estimated cost of the backbone is $1.7 billion, with an incremental investment of up to $1 billion for network upgrades, voltage support and addition transmission line and interconnection work."
Another state likely to see increased T&D buildout in the near future is Nevada, where GridLiance GP LLC (Chicago, Illinois) is planning the Sloan Canyon Transmission Line project, which includes a 20-mile line from Boulder City to Pahrump, and a 12-mile line from Boulder City to an area near Las Vegas. GridLiance also is seeking permits to build the Carpenter Canyon Substation in Pahrump and the Trout Canyon Substation near Las Vegas, following the completion earlier this year of its new switching station in Boulder City.
NextEra Energy Incorporated (NYSE:NEE) (Juno Beach, Florida) recently completed its acquisition of GridLiance from The Blackstone Group (NYSE:BX) (New York, New York) for $660 million, including the assumption of debt. GridLiance owns approximately 700 miles of high-voltage transmission lines and related equipment across six states, including Nevada and California. Subscribers can learn more from Industrial Info's project reports on the lines terminating in Pahrump and near Las Vegas, and the Carpenter Canyon and Trout Canyon substations.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn.
Click on the image at right for a map from Industrial Info's Geolocator tool of U.S. T&D projects set to begin construction in third-quarter 2021.The EIA defines distribution as the final stage in delivering electricity to homes and businesses via a high-voltage transmission system. More than half of the $57.4 billion invested in 2019 went toward capital-spending projects to replace, modernize and expand existing infrastructure, ranging from neighborhood power lines to substations that manage capacity, according to the EIA.
About 40% of 2019's capital spending went toward power lines, both underground (23% of the total) and overhead (17%).
Looking ahead, the highest-valued T&D projects set to begin construction in the third quarter of 2021 is a $90 million line from Montfort to Middleton, Wisconsin. It is part of a broader effort by American Transmission Company LLC (ATC) (Pewaukee, Wisconsin), which is majority-owned by WEC Energy Group Incorporated (NYSE:WEC) (Milwaukee, Wisconsin), to bolster transmission across roughly 100 miles of Wisconsin and Iowa. Subscribers to Industrial Info's Global Market Intelligence (GMI) Power Project Database can click here for a detailed project report.
Construction of the Montfort-Middleton line is not guaranteed. Opponents allege one of the three regulators on the Public Service Commission who approved it had a conflict of interest, and a Dane County judge recently said he would revoke the permit if the allegation can be proven, according to the Wisconsin State Journal. Opponents have until the end of August to prove interactions with one of the project's owners tainted one commissioner's approval of the line, according to the Journal.
Public Service Company of Colorado, a subsidiary of Xcel Energy Incorporated (NASDAQ:XEL) (Minneapolis, Minnesota), is preparing to begin construction on a $54 million line from Littleton to Denver, Colorado, running 15.4 miles from Xcel's Greenwood and Denver Terminal substations. The utility aims to bolster capacity from 115 kilovolts (kV) to 230 kV. Subscribers can learn more from Industrial Info's project report.
Xcel recently requested approval for a transmission expansion plan in Colorado. In addition to its existing projects, Xcel aims "to build 560 miles of 345-kV transmission lines, creating a backbone that will enable 5,500 megawatts of incremental renewables and help Colorado achieve its 2030 carbon reduction goals," said Ben Fowke, the chief executive officer of Xcel, in a recent quarterly earnings-related conference call. "The estimated cost of the backbone is $1.7 billion, with an incremental investment of up to $1 billion for network upgrades, voltage support and addition transmission line and interconnection work."
Another state likely to see increased T&D buildout in the near future is Nevada, where GridLiance GP LLC (Chicago, Illinois) is planning the Sloan Canyon Transmission Line project, which includes a 20-mile line from Boulder City to Pahrump, and a 12-mile line from Boulder City to an area near Las Vegas. GridLiance also is seeking permits to build the Carpenter Canyon Substation in Pahrump and the Trout Canyon Substation near Las Vegas, following the completion earlier this year of its new switching station in Boulder City.
NextEra Energy Incorporated (NYSE:NEE) (Juno Beach, Florida) recently completed its acquisition of GridLiance from The Blackstone Group (NYSE:BX) (New York, New York) for $660 million, including the assumption of debt. GridLiance owns approximately 700 miles of high-voltage transmission lines and related equipment across six states, including Nevada and California. Subscribers can learn more from Industrial Info's project reports on the lines terminating in Pahrump and near Las Vegas, and the Carpenter Canyon and Trout Canyon substations.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn.
