Overinvestment in Grid Modernization Is a Real Possibility

Abstract

Sixty percent of the U.S. distribution grid, which carries electricity to homes and businesses at the local level, have exceeded their 50‐year life expectancy. The Brattle Group estimates that $1.5 trillion to $2 trillion will be spent by 2030 to modernize the grid just to maintain reliability—a huge amount that elevates the importance of state public utility commissions (PUCs) conducting careful cost‐benefit review.