Utilities Could Face Significant Increases in Constructions Costs

According to a report by The Brattle Group released by the Edison Foundation, electric utilities across the United States are facing substantially higher construction costs as they continue to address the country’s need for new investment in generation, transmission, distribution and environmental compliance.

09/25/2007


According to a report bynmental compliance.

The report, “Rising Utility Construction Costs: Sources and Impacts,” found that construction cost increases, whose sources are external to the utility industry, will affect industry investment planning and present new challenges for regulators. Rising costs have been primarily due to high global demand for commodities and manufactured goods, higher production and transportation costs (in part owing to higher fuel prices), and a weakening US dollar. Key government forecasts of electricity costs do not reflect these recent price increases, calling into question the accuracy of the current projections of retail electricity prices.

To view the entire report, click here .





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