Survey Questions - Edison Electric Institute

Out of Sight, Out of Mind 2012
$4.5 million per mile (for urban construction). This data shows a cost increase for both the high and low
values as compared to the 2009 report. In the 2009 report, the underground range was from $63,000 to
$2,074,000. For overhead distribution, voltage levels do not contribute as greatly to the variation in costs as
compared to transmission lines. The variation in costs from rural to urban is related to the need for a greater
number of poles or manholes, transformers, and service drops per mile to serve a denser load. (Do not
assume that the low end costs provided by some utilities can be replicated by every utility.)
Table 6.2 Cost per Mile: New Construction Distribution
Overhead Underground
Urban Suburban Rural Urban Suburban Rural
Minimum $126,900 $110,800 $86,700 $1,141,300 $528,000 $297,200
Maximum $1,000,000 $908,000 $903,000 $4,500,000 $2,300,000 $1,840,000
Conversion Cost
Table 6.3, Cost per Mile: Converting Overhead to Underground Transmission, presents a range of costs for
converting overhead transmission electrical facilities to underground facilities. The conversion costs ranged
from $1.1 million per mile for rural construction, to $12 million per mile for urban construction. In the 2009
report, transmission conversions were not discussed. The conversion costs may not appear to differ much
from the cost of new underground distribution construction; however, the salvage value of the overhead
system that would be removed during a conversion can offset some of the conversion costs.
Table 6.3 Cost per Mile: Converting Overhead to Underground Transmission
Urban Suburban Rural
Minimum $536,760 $1,100,000 $1,100,000
Maximum $12,000,000 $11,000,000 $6,000,000
Table 6.4, Cost per Mile: Converting Overhead to Underground Distribution, presents a range of costs for
converting overhead distribution electrical facilities to underground facilities. The conversion costs ranged
from $93,000 per mile for rural construction, to $5 million per mile for urban construction. This cost has
increased compared to the range of $80,000 to $2,130,000 from the 2009 report. Here, too, the salvage value
of the overhead system that would be removed during a conversion offsets the conversion costs.
Table 6.4 Cost per Mile: Converting Overhead to Underground Distribution
Urban Suburban Rural
Minimum
$1,000,000 $313,600 $158,100
Maximum $5,000,000 $2,420,000 $1,960,000
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