December 2018, Vol. 245, No. 12


Contractor Competition Delivering Lower Costs to US Utilities

By James M.  Seibert, Managing Partner, Chicago Energy Associates LLC Electric and gas utility executives, and regulators are increasingly focused on the cost of the capital expenditures (capex) in transmission and distribution (T&D) infrastructure.   Total capex across the U.S. energy delivery complex is about $120 billion per year (Figure 1), and commonly more than three times larger than operations and maintenance expenses (excluding depreciation), and it seems to grow every year.   Consequently, many utility leaders are openly and appropriately questioning whether the industry’s construction contractors are exploiting the vigorous demand f

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