ResilienceWhy doesn’t the U.S. bury its power lines?
It is nearing the end of a highly destructive hurricane season in the United States. The devastation of Hurricane Florence in North and South Carolina caused more than 1.4 million customers to lose power and Hurricane Michael has cut service to an estimated 900,000 customers in Florida, Alabama, Georgia, and the Carolinas. Soon, winter storms will bring wind and snow to much of the country. When it comes to electricity, people turn their attention to the power lines overhead and wonder if their electricity service might be more secure if those lines were buried underground. But having studied this question for utilities and regulators, I can say the answer is not that straightforward. Burying power lines, also called undergrounding, is expensive, requires the involvement of many stakeholders and might not solve the problem at all.
It is nearing the end of a highly destructive hurricane season in the United States. The devastation of Hurricane Florence in North and South Carolina caused more than 1.4 million customers to lose power and Hurricane Michael has cut service to an estimated 900,000 customers in Florida, Alabama, Georgia, and the Carolinas. Soon, winter storms will bring wind and snow to much of the country.
Anxious people everywhere worry about the impact these storms might have on their safety, comfort and convenience. Will they disrupt my commute to work? My children’s ride to school? My electricity service?
When it comes to electricity, people turn their attention to the power lines overhead and wonder if their electricity service might be more secure if those lines were buried underground. But having studied this question for utilities and regulators, I can say the answer is not that straightforward. Burying power lines, also called undergrounding, is expensive, requires the involvement of many stakeholders and might not solve the problem at all.
Where should ratepayer money go?
Electric utilities do not provide service for free, as everyone who opens their utility bill every month can attest. All of the costs of providing service are ultimately paid by the utility’s customers, so it is critical that every dollar spent on that service provides good value for those customers. Utility regulators in every state have the responsibility to ensure that utilities provide safe and reliable service at just and reasonable rates.
But what are customers willing to pay for ensuring reliability and mitigating risk? That’s complicated. Consider consumer choices in automobile insurance. Some consumers choose maximum insurance coverage through a zero deductible. Others blanch at the higher premiums zero deductibles bring and choose a higher deductible at lower premium cost.
To provide insurance for electricity service, regulators and utilities must aggregate the preferences of individual customers into a single standard for the grid. It’s a difficult task that requires a collaborative effort.
