Well illustrating problems when electric power transmission lines are underground was the huge power outage in central Auckland, New Zealand in February 1998. Hurricane Sandy left many electric utility executives, their customers, local and state government leaders and regulators contemplating placing overhead power lines underground. In highly urbanized areas, the cost of underground transmission can be 10–14 times as expensive as overhead. If a new facility cannot be justified to the regulatory agency, the utility must bear the costs or at least the differential costs of designing, constructing and operating the facility. For example, on this anandtech.com forum thread, a member claimed they were quoted $6.50 per foot, plus a $350 fee and $600 new meter fee. A typical new 69 kV overhead single-circuit transmission line costs approximately $285,000 per mile as opposed to $1.5 million per mile for a new 69 kV underground line (without the terminals). Line outage durations. There are signs that regulatory agencies are modifying their approach, however. Benefits Annualized Cost Underground Power Lines $10,000,000,000 O&M Savings Negligible Tree trimming savings $50,000,000 "100-Yr" Post Storm rebuild $40,000,000 Avoided Sales Lost $14,000,000 Avoided Vehicle Accidents $150,000,000 Avoided Outages … According to this CNN article, it can cost upwards of $1 million per mile, but the geography or population density can halve this cost or even triple it. This rate differentiation must be the norm and not the exception. Under these ­arrangements, however, utilities remain responsible for the higher maintenance costs over the life of the lines. Like many things in life and business, underground power lines have both pros and cons. According to the May 2011 paper “Underground Electric Transmission Lines” published by the Public Service Commission of Wisconsin, “The estimated cost for constructing underground transmission lines ranges from 4 to 14 times more expensive than overhead lines of the same voltage and same distance. This is where HomeAdvisor.com comes in. All new developments in the region have power lines underground as the site works for construction and road building typically provide easy and cost-efficient access to install the lines. PG&E's cost to build new overhead lines is approximately $150 per … The placement of power lines underground typically is driven by the lack of available right of way or aesthetics. A new 345-kV line was required to connect new generation facilities to the New England power grid. However, placing power lines underground -- particularly if relocating existing overhead lines -- carries significantly higher costs without a corresponding improvement in reliability of electrical service. In addition to the intangible impacts, there are considerable direct economic impacts to customers resulting from lost economic activity, food spoilage, looting, etc. Established standard design and construction practices are to place such lines overhead. On another forum thread at GarageJournal.com, a forum member claimed he paid $2,000 to bury 430 feet of electrical wire. During the extended line outages required for underground line repairs, services to customers are disrupted. Unless special exceptions are obtained ahead of time, IOUs are not allowed to include their expenses for works-in-progress into their rate bases. 42 Responses to Want your power lines underground? In addition, preparing the independent cost comparisons is fraught with ­challenges. This fee may or may not include the conduit, which most of the time, you may be responsible for. Otherwise known as undergrounding, this type of power transmission is ideal for densely populated regions, considering that it saves space and is aesthetically better than overhead cables. The overhead lines are mounted onsupports like wooden, steel, … Take, for example, one investor who purchased a piece of property off of a paved county road. Newest to Oldest Oldest to Newest « Previous 1 2 3. The costs that you as a resident are required to pay varies based on a number of things such as population density, network load requirements, topography and ground conditions. Restrictions enforced by regulatory agencies try to ensure utility customers are not unduly burdened with system improvements that benefit a limited number of customers. The cost to install the underground power at $14,500 quoted in the Council Report of December 2016 was based on the estimate provided by Western Power. Currently for distribution lines, those costs are passed on to the land developers who request underground services who, in turn, pass the costs on to home buyers. On top of this, you may need a new power meter, depending on your situation. With more electric vehicles coming down the road – utilities must... Home energy is stuck in the 20th century with innovation urgently... Can a repeat of the crisis in Texas be avoided? Trenches are used to place utilities underground, install lawn sprinklers or devise a drainage system on your property. Regulatory agencies usually do not allow utilities to differentiate between underground and overhead services in their rates. Engineers and planners are developing lists of costly obstacles to overcome while customers continue to demand underground power delivery. By Eleanor Cummins June 07, 2018 Technology The first required change is a redefinition of who is responsible for the differential costs associated with building and maintaining power lines underground and converting overhead lines to underground. Order . At over ten times the cost, this would become expensive very quickly. Please read our disclosure policy for more info. A new power line-whether overhead or underground-cannot be included in the rate base until it is energized and serving customers. Utilities cannot take this on, first, because constructing overhead structures-let’s say a few structures within a mile-is less expensive than trenching a mile’s worth of land to 8 feet or more in depth, and second, because customers generally do not accept a utility’s estimates or explanations as credible. If you continue to use this site we will assume that you are happy with it. Two of the four main power supply cables, the older gas-insulated ones, failed one after the other. (adsbygoogle=window.adsbygoogle||[]).push({}); Advertising Disclosure: This content may include referral links. Underground is the obvious way to go, but it needs to be done so that it allows room for expansion. Overview and process of converting residential overhead electric service to underground (Up to 400 amps/self contained meters) Overview Xcel Energy conversion charges* Base charge $340 per service conversion Footage charge $6.50 per foot of wire from the pole to the meter socket. There is no average subsurface or soil type in the U.S. that would support such a calculation. We gathered a few quotes depending on a few situations and included our findings inside our table below. State Underground Power Program (SUPP) – the cost of undergrounding is shared between the State Government, Western Power, Local Government Authorities (LGAs) and property owners. The developer may then pass those costs to home buyers who purchase property fed by underground power lines. “They can be, but it’s expensive,” is the proverbial answer concerning underground power delivery, but the time is quickly approaching when utility customers and government officials will demand an answer that provides a more in-depth, independent look at how much more expensive underground power delivery is compared with overhead power delivery. That differential cost must be financed and will impact the utility’s return on investments to their stockholders. The State Underground Power Program (SUPP) replaces overhead power lines with underground power infrastructure. Line modifications. For example, southeastern Connecticut, a generation resource-limited area, is also one of the wealthiest areas of Connecticut. Western Power install the new underground cabling and street lights along street verges, connecting each home to the new … The lifecycle cost of an underground power cable is 2-4 times the cost of an overhead power line. Underground cables take up less right-of-way than overhead lines, have lower visibility, and are less affected by bad weather. All new developments in the region have power lines underground as the site works for construction and road building typically provide easy and cost-efficient access to install the lines. What does it cost to put overhead power lines underground? These tangible and intangible impacts challenge the electric utility industry’s attempts to justify the installation of overhead electric distribution and transmission systems. Carolyn A. E. Greenwell, P.E., is a transmission line engineer manager at SAIC. He has a bachelor’s degree in electrical engineering from the University of Florida and has more than 40 years of experience in the electric utility industry. Because the bulk power generated would benefit consumers throughout the region, the costs of those new generation facilities and associated overhead transmission tie line were shared by all New England ratepayers. In at least two cases, reasonable agreements were reached by the utility and government agency for sharing the differential costs of placing the transmission lines underground. This desire surges into prominence whenever natural disasters cause destruction on the overhead distribution and transmission networks across the country. The durations of underground line outages vary widely depending on the operating voltage, site conditions, failure, material availability and experience of repair personnel. An administration or setup fee can range anywhere from $200 to $500 if you were to use your electric company. At least once per year, we recommend that you use binoculars or a telescope to view the powerline coverings (insulation), and also check the poles to make sure they aren’t rotted or damaged. The differential costs for undergrounding portions of the 345-kV tie line, however, were borne only by the southeastern Connecticut ratepayers. Since costs can be north of $750 per foot to actually bury power lines or 10 times greater than roughly $70 per foot to install them above ground, the most sense could be using more durable, smarter transformers, which can be more efficient from a power perspective as well as less cost invasive. As the additional construction time, specialty cable costs and excavation costs continue to increase, the issue of who bears these differential costs remains unsolved. We have selected a three-phase cable to give a direct comparison to the ABC option presented in section 3.3 (and because two-phase HV cable is not common). 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