U.S. T&D Developers Line Up $6 Billion in First-Quarter Buildouts

Major utilities across the U.S. increased their annual spending on transmission and distribution (T&D) projects 12% from 2003 to 2023, from $287 billion to $320 billion, according to financial reports to the Federal Energy Regulatory Commission (FERC). That trend is set to continue next year with developments in regions facing higher demand for energy access. Industrial Info is tracking more than $6 billion worth of T&D projects across the U.S. that could begin construction in the first quarter, including more than $1 billion worth with a high likelihood (81% or more) of kicking off as planned.

Among the projects well-positioned to move forward is FirstEnergy Corporation's (NYSE:FE) (Akron, Ohio) $36 million line from Bowling Green to Delta, Ohio, which is designed to run nine miles and connect an existing, 345-kilovolt (kV) line to the $80 million Melbourne Substation in Delta, also set to begin construction. It will cover Fulton County's townships of Delta Village, Fulton, Pike, Swan Creek and York.

American Transmission Systems Incorporated, a FirstEnergy subsidiary, says the new line is needed "to enhance electric service reliability for existing customers, add redundancy to the network and allow for future growth." Subscribers to Industrial Info's Global Market Intelligence (GMI) Power Project Database can learn more from detailed reports on the power line and new substation.

Other FirstEnergy projects nearing kickoff in Ohio include a $10.8 million transmission loop from Galion to Marion, running about 20 miles from the existing Galion Substation to Shell plc's (NYSE:SHEL) (London, England) $140 million Marion County Solar Plant, which is set to begin construction before the end of 2024. Subscribers can read detailed reports on the transmission loop and solar plant.

AEP Texas, a regional subsidiary of American Electric Power (NASDAQ:AEP) (AEP) (Columbus, Ohio), is developing two T&D projects along the Texas-Mexico border: the $24 million Lion Substation in San Juan, just east of McAllen, which will include a three-mile transmission line, and a $14 million line rebuild within Laredo, which will relocate two miles of line connecting a pair of existing substations.

AEP says it is upgrading equipment "to meet current AEP standards" and reduce the likelihood of "wide, community-sustained power outages." Subscribers can read detailed reports on the San Juan and Laredo projects.

Other T&D developers in Texas include publicly owned utility Austin Energy, a department of the City of Austin, which is preparing for a $34 million rebuild of the Brackenridge Substation. The more than 40-year-old substation will be overhauled to meet downtown Austin's growing energy needs, according to the utility, which says upgraded electrical equipment and increased capacity are needed to support a reliable power supply. Subscribers can learn more from a detailed project report.

Kentucky Power Company, another regional subsidiary of AEP, aims to improve the transmission grid in southwestern Kentucky's Leslie County through its Wooton-Stinnett Rebuild Project, several phases of which are set to wrap up before the end of 2024. Early next year, Kentucky Power expects to begin work on a $13.5 million rebuild of a line from Hyden to Hoskinston, which will run about six miles, and a $7.5 million upgrade of the Stinnett Substation in Hoskinston, where one end of the line terminates.

"Crews plan to replace the wooden poles from the 1940s with steel H-frames and lattice tower structures and install new wires along the power line route," Kentucky Power said on AEP's website. "These upgrades ensure more reliable electric service to the community and reduce longer, community-sustained outages." Subscribers can read detailed reports on the line rebuild and substation upgrade.

Subscribers to Industrial Info's GMI Project and Plant databases can click here for a full list of detailed reports for projects mentioned in this article, and click here for a full list of related plant profiles.

Subscribers can click here for a full list of reports for T&D projects across the U.S. that could begin construction in the first quarter.