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Infrastructure Costs

Infrastructure Costs

The past five years have been a period of exploding costs for the electric utility industry and for broadband providers, pushed by soaring demand, supply chain challenges, raw materials shortages, increased labor costs, and tariffs. The impact has been a rapid increase in the cost of producing power, longer and more unpredictable project timelines, and the need for more financing, all of which have driven electric rates up for residences, businesses, and other end-users. Here’s a look at what’s contributing to the trend. Percent increase since 2020:

Infrastructure

  • Utility poles (wood, steel, composite): +25 to 40%
  • Crossarms & braces (steel/wood): +20 to 35%
  • Conductor wire (aluminum/copper): +30 to 50%
  • Transformers: +70 to 100%
  • Grain-oriented electrical steel: +80 to 100%
  • Oil/dielectric fluids: +25 to 40%
  • Copper wiring: +50%
  • Concrete: +25 to 35%
  • Smart meters: +20 to 35%
  • Pad-mounted switchgear: +25 to 40%
  • Circuit breakers/reclosers: +20 to 35%

Build-outs

  • Utility construction labor: +20 to 40%
  • Freight/logistics: +30 to 60%

Broadband

  • Fiber-optic cable: +25 to 40%
  • Splicing & telecom gear: +20 to 30%

Generation

  • Diesel gensets: +20 to 40%
  • Gas turbines: +20 to 30%
  • Solar PV systems: +25 to 35%
  • Wind turbines: +25 to 35%
  • Hydropower components: +20 to 30%
  • Battery storage: +25 to 40%
  • SCADA/EMS systems: +20 to 30%
  • Inverters: +20 to 30%
  • Relays & switchgear: +25 to 40%
  • Natural Gas: +20 to 120%
  • Coal: +30 to 60%
  • Diesel/fuel oil: +40 to 70%

Fleets

  • Light trucks: +25 to 40%
  • Bucket trucks, digger derricks: +20 to 50%
  • Fuel costs (especially diesel): +20 to 30%
  • Maintenance: +15 to 25%
  • Insurance premiums: +20%