The Edison Electric Institute (EEI) recently released updated three-year projections for electric power industry capital expenditures. The estimates, plus historical capital expenditure data, are illustrated in the “EEI Industry Capital Expenditures” slides available, along with other industry financial information, in the Financial Analysis section.
EEI’s financial analysis group reports the following capital expenditures for the next three years:
• 2014 = $103.3 billion
• 2015 = $95.8 billion
• 2016 = $90.6 billion
During 2012 and 2013, $90.3 billion in capital expenditures were made each year.
“The electric utility industry is continuing to make record investments to transform the electric power grid to implement new technologies and renewables, improve resiliency, and to meet the growing demands of our digital society. We project that 2014 will be a record-setting year with more than $100 billion in capital expenditures to upgrade the grid.” said EEI Vice President of Finance and Energy Supply Richard McMahon.
Transmission investments continue to make up a considerable portion of industry capital expenditures. An EEI report released in March found that EEI members’ total transmission investment in 2012 reached $14.8 billion (real $2012). The report also indicates that EEI members’ year-over-year transmission investment was expected to hit a new peak in 2013 of approximately $17.5 billion (real $2012).