Utilities Spending More on Electricity Delivery, Less on Power Production

Nationwide, utility transmission and distribution costs have been rising faster than electricity production costs over the past decade, according to the Energy Information Administration (EIA). Utility spending on power delivery was 65% higher in 2020 than in 2010 — a trend the EIA says could continue.

After adjusting for inflation, major U.S. utilities spent 2.6 cents/kWh on electricity delivery in 2010 compared to 4.3 cents/kWh in 2020. Meanwhile, utility spending on power production decreased from 6.8 cents/kWh in 2010 to 4.6 cents/kWh in 2020. 12/8/2021