THE TRANSMISSION FACTOR

Information collected from Edison Electric Institute's latest "Transmission Capital Budget and Forecast Survey" indicates that shareholder-owned electric utilities and stand-alone transmission companies plan to invest $55 billion in transmission construction between 2012 and 2015. If realized, this investment would represent a 39% increase over actual total transmission investment from 2007 to 2010. The US is clearly entering an era where transmission investment will continue to be substantial. Further, that investment, particularly in high-voltage transmission (HVT), could remain high for another 10-15 years. While no single factor will be responsible for that increase, the cumulative impact of an aging grid, renewables development, wider geographic planning, more independent transmission, Environmental Protection Agency regulations, siting and permitting progress, state initiatives, and more equity capital will make this a good decade-plus for the sponsors of HVT.