Transcript:
In most states, people pay a higher price for electricity now than they did five or 10 years ago.
Some people blame renewable energy. Others blame fossil fuels.
But research from the Lawrence Berkeley National Laboratory shows the reality is more complex.
Hledik: “One of the factors that is driving rates up across most parts of the U.S. is the increase in the cost of the distribution system … that final leg of the journey to bring the electricity into your home.”
Ryan Hledik is with the Brattle Group, which partnered on the analysis. He says many utilities have had to update or replace power lines, poles, and substations.
Hledik: “Parts of the grid now are 80 years old … and in order to continue to provide reliable service to customers, you need to replace and upgrade that equipment.”
As climate change intensifies wildfires and storms, utilities also face growing costs to restore power after disasters.
And in some states, utilities now spend a lot to prepare for disasters – for example, burying power lines and installing more durable equipment.
So the study finds that on average, rising electricity prices have more to do with the cost of reliably getting electricity where it needs to go than with generating it.
Reporting credit: Sarah Kennedy / ChavoBart Digital Media
