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Trends in T&D Management: Reliability and Capital Investment

New Power Executive Biweekly | Tom Myers | July 2005

System reliability and aging physical T&D infrastructure are among the most critical issues that can affect a utility's ability to thrive over the next few years.

 

Since utility deregulation began in the 1990's, underinvestment in transmission and distribution (T&D) assets has become more common. Rate freezes have caused financial pressures, capital constraints and long investment recovery time frames of typically 15 to 20 years.

 

System degradation and failures have forced the industry to refocus its efforts and interest in T&D asset investment. Investor-owned utilities plan to significantly increase their transmission infrastructure investment over the next five years to an estimated $30 billion. Read more to find ou

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