While efficiency improvements have had a major impact in meeting national electricity needs relative to new supply, the demand for electricity continues to increase. Our nation’s demand for reliable electricity is expected increase by 28 percent by 2035. To meet rising electricity demand, electric companies must invest in new power plants, as well as the transmission and distribution infrastructure to deliver the power where it is needed.

According to a 2008 Report by The Brattle Group, investment on the order of at least $1.5 trillion will be required from 2010 to 2030 to maintain the reliable, affordable electricity Americans have come to expect. This includes:

• $505 billion for new generation, assuming no changes in a national carbon policy or forecasted energy-efficiency improvements;
• $298 billion for the nation’s transmission system;
• $582 billion for distribution systems; and
• $85 billion for advanced metering infrastructure and energy-efficiency/demand-response programs.

The research, design, development, and deployment of new technologies needed to reduce GHG emissions will require additional investments.

EEI is leading a national campaign to help electric companies address the challenges of rising electricity costs and the need to invest in the nation's electricity infrastructure. As part of the campaign, EEI is reaching out to state and local officials around the country through participation in various forums and conferences.

Resources

• Transforming America's Power Industry: The Investment Challenge 2010-2030 | Executive Summary
  This report quantifies the total investment that would be required to maintain today's high levels of reliable electric service across the United States through 2030, net of the investment that could be avoided through the implementation of more aggressive energy efficiency and demand response programs.
• Rising Utility Construction Costs: Sources and Impacts
  This report, prepared by The Brattle Group, found that construction cost increases, whose sources are external to the utility industry, will affect industry investment planning and present new challenges for regulators.
• Why Are Electricity Prices Increasing? An Industry-Wide Perspective
  This report, prepared by The Brattle Group for the Edison Foundation, examines the factors underlying recent increases in electricity prices and the potential impacts of these factors on the electric industry’s financial condition.