The decrease between 19 was likely driven by increasing energy consumption rather than decreasing service costs. Transmission is the high-voltage lines that move power over long distances, distribution is the low-voltage lines that bring power into buildings, and administrative costs are for managing customers’ accounts, reading meters, utility office buildings, administrative staff, etc.Īverage annual transmission, distribution, and administration costs per kilowatt-hour (kWh) of energy sold declined rapidly between 19, but have been approximately 2.5-3.5 ¢/kWh since 1980. They show average transmission, distribution, and administrative costs for U.S. Similar graphs appeared in a paper of mine recently published in the journal Energy Policy. The end results are shown in the graphs below. Federal Energy Regulatory Commission (FERC) and the Edison Electric Institute (EEI) to get an idea of just how much the U.S. I dug through years of data collected by the U.S. The wires, poles, substations, transformers, control center operators, utility line workers, and hundreds of other components and individuals that make up the electric grid are absolutely vital - yet their cost is rarely included in critical discussions about the transformation of the electricity sector and pathways to decarbonization. We often hear news about the plummeting cost of natural gas, wind, and solar generation (and the poor prospects of coal), but almost no attention is paid to the cost of the grid itself.
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