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Distribution

Electricity travels at nearly the speed of light, arriving at a destination at almost the same moment it is produced.  Unlike oil or gas in a pipeline, electricity cannot easily be stored.  It must be generated and delivered at the precise moment it is needed.  The nation’s electric distribution systems deliver power along millions of miles of lines to neighborhoods, businesses, and consumers.

How the System Works

After electricity is generated and transmitted, step-down transformers located in distribution substations reduce the voltage so it can be carried on smaller cables or distribution lines. 

Distribution Investment

The distribution system includes substations, wires, poles, metering, billing, and related support systems involved in the retail side of electricity delivery. The need to expand our distribution infrastructure and install new distribution equipment to meet population and demand growth will require continued investment.

  • Electric companies are estimated to spend $14 billion per year on average over the next 10 years on distribution investment.
  • Over the next decade, distribution investment is likely to exceed capital spending on generation capacity as well.

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