State Study Examines Feasibility of Burying Power
Lines
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The North Carolina Utilities Commission (NCUC) issued a report in November that recommends against burying utility lines throughout existing utility distribution systems, because the financial and environmental costs would be too great. The commission did suggest, however, that electric utilities continue their practice of burying lines when feasible, including in newly developed areas as well as when the cost to do so can be paid or shared by the party requesting burial or by a third party.
Responding to public requests, the NCUC’s Public Staff conducted an investigation into burying power and other utility lines after the December 2002 ice storm wreaked havoc throughout central North Carolina, especially in urban areas. The investigation studied the systems owned by the state’s investor-owned electric utilities (Duke Power, Progress Energy Carolinas and Dominion North Carolina Power), but the findings pertain to consumer-owned electric cooperatives and municipal systems as well.
The study concludes that consumers would end up paying considerably higher utility bills, plus the cost of connecting electric service to their residences or places of business. Referring to the investor-owned utilities alone, the NCUC said “Such an undertaking would cost approximately $41 billion, nearly six times the net book value of the utilities’ current distribution assets, and would require approximately 25 years to complete. The ultimate impact of the capital costs alone on an average residential customer’s monthly electric bill would be an increase of more than 125 percent.”
Maintaining underground lines, when required, is more expensive than maintaining overhead lines, the report says.
It calculated that the average residential customer would see a monthly increase of about $2.34 for using 1,000 kilowatt-hours for each $1 billion spent on the conversion.
The full report can be seen on the Web at www.ncuc.commerce.state.nc.us