2013 Report Card for America’s Infrastructure Findings

America relies on an aging electrical grid and pipeline distribution systems, some of which originated in the 

1880s. Investment in power transmission has increased since 2005, but ongoing permitting issues, weather 

events, and limited maintenance have contributed to an increasing number of failures and power interruptions. 

While demand for electricity has remained level, the availability of energy in the form of electricity, natural gas, 

and oil will become a greater challenge after 2020 as the population increases. Although about 17,000 miles of 

additional high-voltage transmission lines and significant oil and gas pipelines are planned over the next five 

years, permitting and siting issues threaten their completion. 

Energy: Conditions & Capacity

The Electric Grid

The electric grid in the United States consists of a system of interconnected power generation, transmission

facilities, and distribution facilities, some of which date back to the 1880s. Today, we have an aging and complex 

patchwork system of power generating plants, power lines, and substations that must operate cohesively to 

power our homes and businesses. There are thousands of power generating plants and systems spread across 

the United States and almost 400,000 miles of electric transmission lines. With the addition of new gas-fired and 

renewable generation, the need to add new transmission lines has become even greater. 

Aging equipment has resulted in an increasing number of intermittent power disruptions, as well as vulnerability 

to cyber attacks. Significant power outages have risen from 76 in 2007 to 307 in 2011. Many transmission and 

distribution system outages have been attributed to system operations failures, although weather-related events 

have been the main cause of major electrical outages in the United States in the years 2007 to 2012. While 2011 

had more weather-related events that disrupted power, overall there was a slightly improved performance from 

the previous years. Reliability issues are also emerging due to the complex process of rotating in new energy 

sources and “retiring” older infrastructure.
Oil and Gas Distribution

The coal, oil, and gas industry includes facilities such as coal mines and oil and gas wells, processing plants (e.g., 

refineries), and systems to transfer raw materials from collection through processing plants to consumers. There 

are nominally 150,000 miles of crude oil and product pipelines and over 1,500,000 miles of natural gas 

transmission and distribution pipelines in the United States, many located underground and crossing multiple 

states. In general, this energy infrastructure is owned by private industry. Since 2008, a series of oil and gas 

pipeline failures have led to deaths, injuries, significant property damage, and environmental impacts. Such 

failures, including those in San Bruno, California, and Marshall, Michigan, have demonstrated a need for greater 

pipeline management and maintenance programs. New federal safety requirements were enacted in 2011 to 

address the increase in the number of incidents due to aging infrastructure and maintenance concerns.

Capacity

In the near term, it is expected that 

energy systems have adequate 

capacity to meet national demands. 

From 2011 through 2020, demand for 

electricity in all regions is expected to 

increase 8% or 9% in total, based on 

population growth and projections 

from the U.S. Energy Information 

Administration. The rate of growth in energy use is expected to be stable and relatively low due to moderate 

population growth, an extended economic recovery, and increased energy efficiency. Supply forecasts show that 

the United States will add about 108 gigawatts (10% of current capacity) in generating capacity by 2016, mostly 

through new natural gas-fired and renewables generation as enhanced environmental regulations, old coal-fired 

facility retirements, and lower natural gas prices take hold. 

After 2020, capacity expansion is forecast to be a greater problem, particularly with regard to generation, 

regardless of the energy resource mix. Excess capacity, known as planning reserve margin, is expected to decline 

in a majority of regions, and generation supply could dip below resource requirements by 2040 in every area 

except the Southwest without prudent investments. The adequacy of energy pipelines and related operations is 

also a growing concern, partially due to capacity constraints in refineries and oil and gas transmission systems. 

Congestion at key points in the electric transmission grid 

has been rising over the last five years, which raises 

concerns with distribution, reliability and cost of service. 

Preliminary findings of the 2012 National Electric 

Congestion Study indicate that critical areas of congestion 

still exist in the Northeast and in southern California.

This congestion can lead to system-wide failures and 

unplanned outages. The public has a low tolerance for 

these outages, even in extreme weather events. 
Additionally, these outages put public safety at risk and increase costs to consumers and businesses. The average 

cost of a one-hour power outage is just over $1,000 for a commercial business. Utilities also often pass on 

“congestion charges” to consumers when transmission lines are overloaded. 

New transmission lines are being planned in response to the need for integrating and delivering new energy 

sources. During the next five years, about 17,000 circuit miles of additional high-voltage transmission lines are 

planned, which is much larger than the historical average of 6,500 miles. 

However, the permitting and siting of these transmission lines often meet with public resistance, which can 

result in significant project delays or eventual cancellations while driving up costs. Over three times as many lowvoltage line projects, which are typically built in more urban areas, were delayed in 2011, compared to highvoltage lines. The result is that while new transmission lines are needed, many are being delayed due to 

permitting issues. 

Energy: Investment & Funding

From 2001 through 2010, annual capital investment in 

electricity infrastructure averaged $63 billion, including 

over $35 billion in generation, $8 billion in transmission, 

and nearly $20 billion in local distribution lines. Funding 

comes from a variety of sources, including government 

agencies, regulated utilities, private companies and 

developers, and nonprofit cooperatives. 

Investment for transmission has been 

increasing annually since 2001 at a 

nearly 7% annual growth rate. For local 

distribution systems, however, nationallevel investment peaked in 2006 and has 

since declined to less than the level 

observed in 1991. Construction spending 

has decreased in recent years, although 

the aging of local distribution networks, 

lack of funding for maintenance, and 

resulting equipment failures have 

received public attention and put 

pressure on some utilities to make 

improvements. 

The investment gap for distribution infrastructure is estimated to be $57 billion by 2020, much larger than the 

investment gap for transmission infrastructure of $37 billion. The increase in adoption of smart grid technologies 

– computer-based, automated systems for the delivery of electricity – has led to additional investment in recent 

years. For example, as part of the American Reinvestment and Recovery Act, the United States invested more 

than $4.5 billion for electricity delivery and energy reliability modernization. These funds were matched by more 
than $5.5 billion from local agencies and the private sector to fund smart grid and energy storage technologies 

across the country, with additional funding going toward workforce training. Additionally, the Rural Utilities 

Service provided $7.1 billion in loans in 2010 to support the modernization of the electric infrastructure serving 

rural America, including more than $152 million for the installation of smart meters.

To date, 25 states have already adopted 

policies relating to smart grid technology. At 

least nine states discussed smart grid 

deployment bills in the 2011 legislative 

sessions, and more than 70 million smart meter 

units were deployed in 2010, compared to 46 

million in 2008. Ensuring that these systems 

work together will be an ongoing challenge. 

The coal, oil, and gas industry has similar concerns with congestion and safe and efficient delivery of resources. In 

particular, the proliferation of shale gas recovery in several regions of the country has not been accompanied by 

the expansion of the transportation systems necessary to carry the gas and associated liquids to the market.

Energy: Conclusion

Trans-Allegheny Interstate Line from Pennsylvania to 

Virginia

Demand for electricity in the Mid-Atlantic region was 

threatening to overload the transmission system for 

Allegheny Power. Throughout the region, the demand for 

electricity has increased significantly over the years, 

while the transmission infrastructure has not increased 

at a proportional pace.

To prevent electrical problems on the grid, Allegheny Energy Inc. built a new 500-kilovolt transmission line 

extending from Southwestern Pennsylvania to West Virginia to Northern Virginia, known as the Trans-Allegheny 

Interstate Line (TrAIL).

Construction took about three years, and the project was completed in 2011. With the transmission line crossing 

three states, it took complex coordination across jurisdictions to make the project a success.

Benefits of the TrAIL project include:

 improving system reliability;

 meeting the growing demand for electricity; 

 increasing west-to-east transfer capability, making cost-effective generation available to more consumers.

Sunrise Powerlink Transmission Line from Sand Diego to the Imperial Valley, California
The San Diego region is prone to brownouts and blackouts 

as summer heat waves strain the electric grid. To address 

the need for additional transmission and greater 

reliability, San Diego Gas & Electric (SDG&E) completed 

the Sunrise Powerlink in 2012, a 500,000-volt transmission 

line linking San Diego to the Imperial Valley, one of the 

most renewable-rich regions in California.

What made this project so unique and innovative? The 

project included 18 months of construction that 

encompassed both overhead and underground 

technology as well as different climates and rough, 

remote terrain. For environmental reasons, nearly 75 percent of the construction was performed by helicopters, 

and the project logged more than 30,000 flight hours. In addition, the Sunrise Powerlink was the subject of a fiveyear regulatory review considered to be the most comprehensive study of a proposed transmission power line in 

state history.

The transmission line will eventually carry 1,000 megawatts of power, or enough energy to serve 650,000 homes. 

This includes a significant amount of wind and solar power. By 2020, 33 percent of SDG&E’s power will be 

derived from renewable resources.

Improving Bottlenecks in Texas Region: Texas Competitive Renewable Energy Program

Texas is one of the few areas of the country where having 

enough energy capacity is expected to be an issue in the 

near term. Texas also wanted to ensure that renewable 

energy sources were a major part of the resource mix for 

adding capacity. As a result, they developed the Texas 

Competitive Renewable Energy Zone (CREZ). 

The CREZ program is a Public Utilities Commission of Texas 

(PUCT) inspired enterprise to deliver 18,500 megawatts of 

west Texas wind generation to markets within the Electric 

Reliability Council of Texas (ERCOT). All work on Texas 

CREZ — stations, towers, and cable — is scheduled to be finished by the end of 2013, the deadline established by 

the PUCT.

This deadline requires an ambitious schedule. Crews set 556 steel poles across three counties in six months along 

a 90-mile right-of-way in North Texas, the longest section of transmission line included in the CREZ program. The 

siting of the transmission lines also requires complex permitting and construction. For example:

 Approximately 117 rights-of-way were acquired for the Clear Crossing — Dermott transmission line, one 

of seven transmission lines that are part of the program. 
 The anchor bolt foundations for the poles, which stand 600–800 feet apart, required 8,850 cubic yards of 

concrete. 

 To connect the Clear Crossing and Dermott stations, about 1,080 miles of cable coiled on 540 spools will 

be needed.

With an ambitious regional plan and successful project delivery, Texas is taking steps to ensure it will be ready for 

the future. 

Energy: Conclusion

Looking ahead in the 21st century, our nation is increasingly adopting technologies that will automate our 

electric grid and help manage congestion points. In turn, this will require robust integration of transmission and 

distribution systems so that the network continues to be reliable. 

Investments in the grid, select pipeline systems, and new 

technologies have helped alleviate congestion problems 

in recent years, but capacity and an aging system will be 

issues in the long term. In addition, with an automated, 

dynamic energy grid system comes the increased risk of 

cybersecurity threats. Protecting the nation’s energy 

delivery systems from cyber attacks and ensuring that 

these systems can recover is vital to national security and 

economic well-being. 

Raising the Grades: Solutions that Work Now

 Adopt a national energy policy that anticipates and adapts to future energy needs and promotes the 

development of sustainable energy sources, while increasing the efficiency of energy use, promoting 

conservation, and decreasing dependence on fossil fuels as sources are depleted. Such a policy must be 

adaptable and scalable to local and state policy. 

 Provide mechanisms for timely approval of transmission lines to minimize the time from preliminary 

planning to operation. 

 Identify and prioritize risks to energy security, and develop standards and guidelines for managing those 

risks.

 Design and construct additional transmission grid infrastructure to efficiently deliver power from remote 

geographic generation sources to developed regions that have the greatest demand requirements. 

 Create incentives to promote energy conservation and the concurrent development and installation of 

highly efficient coal, natural gas, nuclear, and renewable (solar, wind, hydro, biomass, and geothermal) 

generation. 

 Continue research to improve and enhance the nation’s transmission and generation infrastructure as well 

as the deployment of technologies such as smart grid, real-time forecasting for transmission capacity, and 

sustainable energy generation which provide a reasonable return on investment.