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Estimating electricity distribution costs using historical data

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  • Rauschkolb, Noah
  • Limandibhratha, Nathalie
  • Modi, Vijay
  • Mercadal, Ignacia

Abstract

Electrification of heating and transportation is poised to disrupt the electric system by increasing distribution system peaks throughout the United States. This paper adds to the literature by describing the main determinants of electric distribution costs using data reported by 101 major U.S. investor-owned utilities and a set of empirical models. These models separately identify the cost of sustaining existing distribution capacity and the cost of expanding capacity to accommodate new load. It is found that growth in system capacity explains less than 10% of capital investments in the distribution system for a typical utility.

Suggested Citation

  • Rauschkolb, Noah & Limandibhratha, Nathalie & Modi, Vijay & Mercadal, Ignacia, 2021. "Estimating electricity distribution costs using historical data," Utilities Policy, Elsevier, vol. 73(C).
    • Handle: RePEc:eee:juipol:v:73:y:2021:i:c:s0957178721001429
    DOI: 10.1016/j.jup.2021.101309
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    References listed on IDEAS

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