ENGINEERING ESTIRATES OF TRANSMISSION
AND DISTRIBUTION EOUIPMENT COSTS
by
Sergio G. Sequeira
Working Paper
MIT-EL 75-002WP
and
Martin L. Baughman
March 13, 1975
PREFACE
This
paper
is tile second
in a series
estimating
the
capital equipment needs, capital costs, and operation and
maintenance expenses of the transmission and distribution systems
in the electric
po,;er sector.
Otl-herpapers
currently
in progress
or completed include a paper estimating the capital equipment
requirements for transmission and distribution, a paper estimating
the expenses
of operating
and maintaining
t;e transmission
and
distribution networks, and a paper investigating the allocation
of capital costs and operation and maintenance expenses of the
transission
and distribution subsystems to different classes
of consumers.
S.G.S.
M.L.B.
1
ENGINEERINGIESTIMATES OF TRANISMISSION,AND DISTRIEUTION
EQUIPMENT COSTS
by
Sergio G. Sequeira
and
Martin L. Baughman
This document reviews data on the costs of distribution transformers (for botlh overhead and underground systems), distribution
substations, transmission and distribution lines, transmission substations
and the cost
of metering
systems,
for both
large co,,iercialand industrial consumers.
residential
and
Wherever the data were
available, the costs were derived from aggregate company sources.
This was possible for transmission lines, distribution lines, and
transmission substations, where the results
.ere derived from data
published by Electrical World's Annual Statistical Report.
For
distribution substations, line transformers, and metering systems,
data from New England ComDany sources were used.
Tables 1 and 2 sho, recent aggregate average
costs
for trans-
mission and distribution lines for both overhead and underground systems.
As some utilities consider 69 KV
others
think
both tables.
of it as transmission,
this
o be distribution,
voltage
Substation costs appear on Table 3.
in Electric W!orld is subdivided for the nine
(New England, i.iddle Atlantic,
South Aianti
level
East
c, East Southi Central,
hile
is included
in
All of the data
regions of the U.S.
North Central. Wiest Iiorth
West Soutn Central,
Central,
ountain,
and
Pacific).
Each ear date are contained data on new exenditures for
uion lines, and substations, and tne
transmisscn, l.nes,
1 .sri
2
physical quantities of new lines and substations energized.
lines are given
transmission
in
lunits
of circuit,
systerms (above
or
69 I'V), underground
systems
(above 69 KV) and distribution
The new substations
cable
are given
ole miles
The ne.
for over:neai
s.st-e:-s
transmission
in units
(below. 69 KV), respectively.
of
caDacil'y.
,,VA of installed
Cost estimnates for each equipment category in each of the nine regions
are computed via a three year movinn average.
The units are in dollars
per mile for transmission and distribution lines, and dollars per :VA
of installed capacity for substations.
From these three tables,
e note a consistent trend wvhere tihe
Middle Atlantic, Pacific and New England regions have the highest
costs,
followed
by the
Euntain,
East North Central
Atlantic regions, and finally b
and South
the East South Central. West Sout,h
Central and lWestiorth Central regions.
Tables 4, 5, 6 give historical trends in costs for transmission
lines and substaicns.
Table 4
ives
ata for average national trans-
mission lines costs for selected years bet.een 10
were comouted
and 172.
T ese
from a ratio of national expenditures for transmission
(reported by the
Edison Electric Institute) divided by total
aross
increments in transmission capability (in circuit miles as ;repored
by EE!, assuming
2a
nd 3
rate of depreciatiorn). Tiese
t',ataverage costs per circuit mile nave been
escalatin
a
-fiCure
aout
snc;
.'.r
over tne ericd.
Table 5 further
Dreaksdownthese
costs for two voltace classes
of underground and overnead lines for each of the nine census recions
of the countrv. The regional variation is cuite large. Tihe cenr.ra
.rtlantic
states ex:,.ib;it t-- lo;west cs
and te PMountair and :idle
state sai-.t-,
-i t cSin . Tie COS G.f li'.n Cos rutCton s
the ruacd
nou,-in
te-a nr is :roa.:
nz:-m,:es -wit^
r -io! s
3
costs so highl,;while the
igh land premium in the densely populated
Middle Atlantic states is
robably the large contributing factor
-Note also that in 1C71-1973, te
there.
is about
transmission
8 tiies
cost per
ile of underground
that for overhead.
Table 5 shows the historical trends in substation costs.
It apers
over the period from 1953 to 1963, these costs declined
Between
at a rate of about 4.56, per year.
however,
19653 and 173,
the costs leveled out or increased sliShtly,
.withthe largest increases
exhibited in the more densely populated coastal states and the Mount-in
region.
The aggregated average substation costs of Table 3 can be
oint estimates of distribution substation costs on Table
compared to
7.
distribution substations for
The latter shows costs for secific
two different vltace
ratios cbtained from Boston Edison.
It can be
seen that the costs shown in Table 7 are slightly nigher, but this is
probably because the substation costs in Table 3 are for both transThe lesser costs in Table 3
mission and distribution substations.
reflect economies of scale brought about
transmission substations.
enerized
!orld simply lists substations
(Electric
and newi exenditures
y higher capacity in the
for substations in each year,
ithout
making any distinction between transmission and distribution substations).
additional
For com-arison, tables 8 through 12 sho,,,
of costs (n
dollars
.er
.. ) for installed caacityv o
phase overhead and unrderround transformers.
;;
in all cases, ithL ficures runninc from
one
phase overhead
overhead
tra nsf or-errs 1
transTormrs
transformers.
and, 5
o
transForlmers,
to 7
to
31
dollars
doll ars
As exDected
than overheac =ranscrmer .
Economi es
oint estimates
one and three
of scale exist
to 55 dollars Der KA
2
dollars
tVX',
for three phase
pcr WA for one
er ,i',for tree
underaround transforlers
for
Dta se undercround.
nase undercrcrunsnow hiher
cc
s
The cots
There it
single
of vrious
i;;terir;9
s
can be seen that the
rvices
installed cost
are
of a
sanor, on aL½i
imle
l.
residontial
phase w.att-h!our meter is on the order of $25.03 (includinq
S6.50 for installation).
with a recordin
and installation,
'cr
a large industrial
custonmer, ho:wever,
demandmeter, the transformers required for connection,
the cost is in the range of
1200-140G
per r-ter.
C O N C L U S
For use in the regionalized
IO
N S
electricity
suppil
model,
the
data contained in this report suggest the following numbers might
be appropriate.
Transmission Structure
files
The U.S. average cost for all transmission was around S110,000
mile
per structure
in 1972, escalating
at a real rate
of 6: per year.
The costs varied by region according to:
..............
New England
123,000
Middle Atlantic .............
261,000
East NorthCentral ..........
97,000
West North Central ..........
61,000
SouthAtlantic
..............
126,000
East Suth
Central ..........
74,000
West South
Central ..........
58,000
Mountain ....................
77,000
Pacific ..................... 155,000
Substations:
The average U.S. cost for substations
past ten years
economies
of scale
costs. The
fol Iowi ng
tilesehave sho.n
eocrao;icai
ave
little
;wasS8.80/KVA.
or no real escalation
elp ed to offset
real escalation
For
te
because
in per unit
variation in costs wlas recorded to be the
6
New England .10.................
lO.8
Middle Atlantic
...........
10.10
East iorthlCentral ............
9.20
West
7.30
orth Central ......
South Atlantic .
...........
7.70
East South Central
...........
5.20
West South Central ............
7.90
Mountain ......................
12.70
Pacific .......................
12.00
Line Transformers
No
ood average costs for line transformers were available.
Based upon the relative point estimate per unit costs, however, an
averace
cost
of i-
times
that
for substations
projbabl, would
be
sufficient.
Meters:
For meterinc system;s,S25 per residential customers and
S1000 ruer laqe lich
and
o;.er customer seems approoriate.
7
TRANSMISSION LINES COSTS
1 9)\
'-'
72,
Aggregate verages (171,
I ./,
I
III
II
Overi
I
-
-
-
cead
Lines
-
Lnder-rourd
,r;.
2~
230 to
A.ove
q
I
!
345
I
V
and above
I
'
Above
69
IThrouah 23
KV
'.45
KV
I
I
Lw"
I
-
69 KV
I TFhrouon 161 K'!
I
II
New England
150
107
Middle Atlantic
379
143
1243
East
orth Central
118
76
702
West North Central
88
34
177
76
entral
97
51
4o6
West South Central
57
39
243
South Atlantic
East South
447
259
578
163
563(1)
389(1)
Mountain
231 (1)
56
1032 (2)
Pacific
161
70
813(1)
145
63
TOTAL U. S.
- -
--
~~~~~~I
Average
1 972 and 1973.
1971,
579
1049
--
for
597
i
i
488
i
i
In thousands
i
i
of dollar
ii
i
er
structure mile, or ovrhead transmission, and in tI,
nusands
of dollars per cable iile for underground transm iss ion.
(1)
Projected costs, as opposed to actual costs.
2)Projected costs
Source:
for 1972, 1973 and 1974
Eiectrical '. orld, various issues
TABLE
1
8
r.'I>,-'.T.,
.. IC 2,T L
PRI'AY'lTP
Aqgreeante f\
1
(1971,
2,
-verao~r
173)
.
.
Undercround
Overhead
69 KlVand Belov.,
iKV and
New! England
36
98
Middle tl antic
41
98
East
orth Central
24
43
West North Central
13
18
South rtl antic
East Sut Cenrral
23
48
West Soutih Cerntral
14
28
Mlountain
20
35
Pacific
51
62
TOTAL
22
45
elo,;
16
U. S.
-
.
69
.
-
~ ~ ~~ ~ ~ ~ ~ ~
-
-
*
AveraQa for
dollars
19,1, 19,2
poer Doi
1973.
an
in tousands
rle
Source: Electrical '.!orld, various issues.
TABLE
_ .
_
--
2
of
9
SUBSTATION COSTS
'
_
_
,-
,,
_l
Aggregate Averanes
-x
_
ii
r
I
I I -
.
,.
1970
1971
1973
1972
I
_.w
..
.
..
for
1971-72-73
.
7.6
13.7
10.1
7.7
12.1
8.4
9.6
9.2
9.0
6.2
7.1
7.1
7.3
7.9
7.9
7.0
7.5
7.7
tMiddle
15.9
13.4
9.6
6.4
South Atlantic
~ ~
I
12.4
9.1
West North Central
1-72 ---
I
rverage
10.8
9.0
North Central
1 70-7
Tcr
10.0
12.5
East
_
,,
15.1
New Encland
fAtlantic
-
,rV r d'-_
Central
12.1
14.0
3.0
7.5
5.4
5.2
West South Central
6.0
6.5
7.3
10.9
6.7
7.9
13.0
12.0
East Suth
Miountain
14.3
1 .1
11.4
Pacific
12.4
12.3
14.3
10.0
13.0
12.0
8.1
S.8
8.S
8.7
TOTAL U.S.
9.1
_I
__
I
In thousands of dollars or
MV.Aof installed
capacity
Source:
Electrical
TABLE
3
Iool ,
various issues
'
TPP
=;1V
"
_
1
-- ;,"
'I
_
_-~-
i
` ·
_,_= r
·
_
_
Aorenate
(1)
!!"
"
~ ~L.·
,
-
_..
_
veraces
(3)
iurrent t(2)
Y t..
T
COS
, , ....
II
(4)
I
C 0 ST
-
' / C,,
(
.
CvUrrent
S 10
1
' }
II
.
1972
17418
392,141
111
89
1971
1806
384 .037
102
84
1970
1680
373,763
81
69
1969
1554
360,216
94
77
1968S
1503
350,618
94
78
1967
1323
341,524
71
60
1966
1137
329,348
71
59
319,790
72
58
54
19 55
1964
824
313,033
68
1963
644
48
1962
609
307,027
299,706
51
3$
1961
579
290,770
45
37
1960
283,474
41
34
19505
276,002
34
29
434
1 954
248,644
240, 84
-
19
17
i949
.
.
-' Tnz-ue
-_on tie-1r4'
) Source:
(1)
:
S~~-,
a 1s
')
4 :
-t - as -
T
1
--
A =.
t ,
t
rC
-
L~~~
:a 'r c ,a:I
- c
- -'ore a:!n.
4
"~-
T-
r'
Three Year Arenate
Avpre-s
SCri)," tructure
Mle
iJu,)/Cbd'e
.iie
LI2r-rcur
R E G:
.
I
;
1:
w
.
.
NEW ENGL'ND
MIDDLE ATLANTIC'C
EAST NORTH
CENTRAL
WEST NORTH
CENTRAL
SOUTH ATLANTIC
150
107
447
70-68
122
82
400
67-65
205
69
280
73-71
379
143
1243
259
70-68
254
83
220
180
67-65
111
68
171
145
73-71
118
76
702 i
578
70-68
111
48
569
762
67-65
100
38
141
73-71
8£
34
163 i
70-68
47
25
224
67-65
45
21
24 i
73-71
177
76
73-71
70-68
EAST SCUTH
CENTRAL
WEST SOUTH
MOUNTAIN
PACIFIC
67-65
59
38
73-7i
97
51
70-68
63
33
67-65
I 30
32
73-71
57
39
239
70-68
83
35
397
67-65
64
29
47
296
367
56
597
70-68
96
29
767
67-65
34
24
131
73-71
161
70
70-68
50
60
73-71
175
67-55
?6.
Source: .
Repcrt:
i
I
vr'cuJ
595
-
T A
LE
63
1049
48S
700
451
-,-l'-nuai
S*-'t'al1
insiqn1flCan'
281
45
1I
issu2s
579
I
905
70-66
t
570
60
73-71
571
i
292
67-65
TOTAL U. S.
1036
260
I
,-.
-
_, _
C
aJ
t
C-C
:
C-
e-.
0-.
_'
_
C
,
·
l
_
_
u
·
-3
-
C
I_:
CO
r-
CJ
3
7.
-
,.
Cl
_
.
.
C
C
0
La
r D\
(
-:
co
r--
.
.
(0
-
c7 l
C
c',
-
o
o cCl
crcn
-..
,
r_
c
cM C'
n
_
t..~
,
.Z3o
.C3
CD
c
L
.
-o
V)
LA
C)
I-
CJ
O>
*-
'
*'...
.-
-.
r'.
.
LI
C
o
('9
C1
(C ,c-LZ
t-c,
-
..Z~
t
,--.
o
r-_
..
,-- cC
_
_.
r
a-'
,"--
C
co
c
V}
.
'0
e
CC
r
col
IC
-
o
_i
L
t
LA
r',3
O
._
0:
C)
C)
0
C
r~r
-
as
&n
c:
cC
SC)
J
_
I--"c
oI
1cn
G>
t.
_c i. Ci
cC
H
.
CC
-
_r
r. .
C-
.
(J
(0.
UD
0
C
C.
CS
C
L,
L
cc
CI
c' cn
Ln C
'L
.
.
-A -
.
l
O.
1
-
0cs
-C
C0
CL
e
fN
O
CC
'"t
1.:
I
C
oI
tL
O
ri.--
2
Or
C
I-I
_
_
Ln
cLAnjO-
L3LL
('\C~
T1
LA
_t-
ciW.xt_
C)
C-
t
(>
L-tLn
Z
)
x
w~~-
t)UCl CtOC
^,.
L,C
Ct
LA
C
_
_
C:)
L,-
)'
c' C.
i-
_
c_
.
Ls
_v C
0'
i
_:U';
-_ L_
-
.
.
ON_
- .- r__c=
Cl
C:
t-
O.() t
CA
C.
LA
3
C
C
~..
C
0L
C
_ I
=,
LA
C
13
DISTRIBUTION
COSTS
SUBSTATIOS
Point Estimates
KV1
/
Capacity
Capacity
NVA of Installed
18.80
10.6
15
',,A o
Firm
Capaci
Ui")Caacity
O(,,N''A)
13.8/4.16
$
$
Firm
Instal led
KV 2
(1)
14.80 (2)
26.60
t-,
(1)
22.80 (2)
13.5
8.75
11.5/13.8
280
150
7.50
(2)
14.00
(3)
11.5/13.8
280
150
7.60
(3)
14.30
(3)
11.5/13.8
80
50
10.80
(3)
17.30
(3)
13.8/4.16
,,, _
_
_
_
_
,
I,
,
(1)
19C7 Costs
(2)
970 Costs
(3)
Source:
1973 Costs
Boston Edison
TA
LE
7
ompany
14
COSTS FOR 1 PHASE OVEP"EAD T P"S.P.
-S
Point Estimates
-
$
K V A
$
5
275.49
55
10
274.80
27
15
430.23
29
25
337. 66
14
30
466.71
16
371
562.32
t5
50
522.38
10
75
943.40
13
100
951 .13
10
167
1 ,349.24
8
250
1,650.17
7
333
2,096.04
6
500
2,646. 90
5
833
4,-33.55
5
K V
k
.
_
~~ ~ ,~
1573 Costs
S Average
nstaien
Source: Ed;;r-.
TAS
Cc
-
. .achen,, ,.E.E.S.
LE
S
A
15
COSTS FOR 3 PHASE OVERHEAD TRASFORIERS
Point Estimates
KVA
$
KVA
30
671.34
22.4
45
886.72
19.7
75
1,024.46
13.7
112 1
1,390.27
12.4
1,605.93
10.7
150
1973 Costs
$ Average installed costs
Source:
Edw.ard ulachenski , i;ew Encland Electric
TABLE
9
System
16
COSTS
FOR
1
and
3
PH[SEr
Or\lEAD
T
S
OM
Point Estimates
~.1
T~ e
I
K V A
KVA
0
/V
l/V
1
C-
C7,-2
I
I
/
i
---
25
1
i20/240
325
125
18
50
1
120/240
375
125
10
75
1
120,/240
600
125
9.7
100
1
120/240
658
125
7.Q
167
1
120/240
1 25
7.3
45
3
240/480
600
125
45
3
120/20
625
I
75
3
240/480
3
120/240
1 C00
125
li
120/2C0
1250
!25
122
277/480
1275
125
12.4
9.2
11212
112
1
3
Lz
112 -
,
*z
i25
150
3
120/240
1250
125
150
3
120/203
1350
12c
~~~~5Q
16
I,I
i
onf
7
1'.3
?9.
1;
.
277 /4 C
3~~~~~~~~~~~~
_
-mumer
.
CaiD tal
-
C - Instailaon
'
CC
2
1c73 CosS
So.Urc:
_cs trn :Cson
TA. ~ : !
Sct-ar'
C osts
__
17
COSTS FOR 1 PIHASE UTDEPSROU'D
TRAFR.:P,pS
Point Estimates
KV A
$
|
K--V
15
468.37
31.2
25
557.42
22.3
606.00
16.2
50
557.46
l .
75
892.27
11.9
100
1,053.46
10.5
167
1,672.56
10.0
37
1973 Costs
$ Averae Instaled Csts
Source:
Edwv.ard
''iachensk i,
sewEngland Electric
Sy s tern
TAiSLE
iI
18
COSTS FOR 1 and 3 PHASE U':"D-G0RU3ID
Point
r STPIUrr-0T
Estimates
Point Estimates
I
KV
A
100
0
I
V1/
i~~~~~
2
C1
KVA
C2
1
120/240
1200
125
13.3
3
240/480
1425
125
13.8
3
120/28C
1525
125
14.7
3
277/480
1850
125
17.6
150
3
240/480
2375
125
16.7
225
3
245/$wu
2500
250
12.2
120/208
3100
250
14.9
112
112
1
1
112
1
225
300
3
240/480
2500
350
9.5
300
3
120/2208
2:775
350
10.4
300
3
277/480
2775
35
10.4
4-
500
3
120/208
350
7.i7
i
500
3
240/480
350
7.3
500
3
277/4Q30
3475
35C
750
3
120/203
4000
350!
1000
240/0r
-3C0
30
1000
277/480
S
3300
t
m
a
7.7
d
4.8
350
_.
. .
- Number f P-ises
rZ =
C1 -
l
-9
'
Capital
-
C't
/
19 73 Costs
Sr;
O;CIrn: n
t
!
METERS
19
COSTS
Point Estimates - S1973
$
o
Residential
and Small
Commercial
Consumer
(1)
- Single-Phase meter (2)
25.00
- One hour demand meter (2)
69.36
Large Commercial and Industrial Consumer (3)
- Recording Demand meter
600.00
- Watt hour meter
200.00
- Potential Transformer
Connected
244.00
to 14 KV Line
Connected to
150.00
4 KV Line
- Current Transformer
Connected
to 14 KV Line
Demand < 1000 KVA
210.00
2500 KVA
226.00
-
Connected
to
4 KV Line
150.00
Demand ~ 200 KVA
TOTAL ...........................
less than 48 Kll
(1)
Demand
(2)
Includes 56.50
(3)
Installation cost of S50-10,
'
S1150-S1370
qm'l
Source:
for installation cost
I
·
er custer,
i
i
not included
..I
Thomas Pearson, Boston Edison Conman,
TAB
L E
13