The High Cost of Burying Power Lines: A Trade-off Between Resilience and Affordability

Following disruptive weather events like blizzards, the question of burying power lines to enhance grid resilience frequently arises. While undergrounding power lines offers protection against weather-related outages, the substantial costs associated with such projects present a significant challenge for utilities and ratepayers.

The Resilience Benefits of Undergrounding

Undergrounding power lines demonstrably increases system resilience. As Christopher Knittel, the George P. Shultz Professor of Applied Economics at MIT’s Sloan School of Management, notes, “Undergrounding power lines makes the system more resilient.” This protection shields lines from high winds, ice accumulation and falling branches – common culprits behind power outages.

The Steep Price Tag of Underground Infrastructure

However, the benefits of undergrounding arrive at a considerable financial cost. Trenching streets and sidewalks, purchasing specialized insulated wires, and addressing potential obstacles like tree roots and rocks all contribute to higher installation expenses. According to Johannes Pfeifenberger, an economist and electrical engineer with the Brattle Group, putting distribution wires (those connecting to homes) underground can cost two to ten times more than maintaining them above ground. Undergrounding transmission lines – the high-voltage lines carrying electricity over long distances – is even more expensive, potentially costing ten to fifteen times more than above-ground construction.

A 2021 study in Latest York state illustrated these costs starkly. Installing a new above-ground distribution power line was estimated to cost between $120,000 and $3.6 million per mile, while the underground equivalent ranged from $4 million to $7.2 million per mile. The study projected a net loss of $261 billion statewide if all lines were buried, with potential doubling or tripling of monthly electric bills for some customers.

Cost-Benefit Considerations and Targeted Approaches

Despite the high costs, undergrounding may be justified in specific circumstances. Dense urban areas, where space is limited and overhead lines are impractical, often necessitate underground infrastructure. As Pfeifenberger points out, “In dense city areas, we do have a lot of the wires underground because there’s not that much space.”

However, for widespread implementation, a more targeted approach is crucial. Knittel advocates for identifying the most critical lines in the network and conducting a cost-benefit analysis before considering undergrounding. This approach prioritizes protecting essential infrastructure while avoiding the exorbitant costs of burying all power lines.

Challenges Beyond Installation

Even after installation, underground lines are not immune to damage. Excavation activities, construction perform, and even rodents can compromise buried cables. Repairing these lines is often more complex and time-consuming than fixing above-ground lines, requiring utilities to locate the fault and re-excavate the area.

The Impact on Energy Costs

Kyle Murray, Massachusetts program director at the Acadia Center, emphasizes that infrastructure costs significantly contribute to rising energy bills. Undergrounding power lines would likely exacerbate this issue, increasing the “delivery” portion of ratepayers’ bills.

the decision to bury power lines involves a complex trade-off between enhanced resilience and affordability. A strategic, targeted approach, focusing on the most critical infrastructure, appears to be the most pragmatic path forward.