1. Project Costs 2016 Transmission & Distribution Benchmarking
Community Insights Conference
Project Costs
August 22-25, 2016
Park City, UT

2. Project Cost Analysis – What was Included
Original list of projects were reported as completed in 2015 by participants:
Substation – 32
Transmission – 39
Distribution - 49
Only transmission projects with reported line and/or circuit miles reported and substation projects with “installed MVA” were included in the analysis.
Transmission capital expenditures = 88%
Substation capital expenditures = 77%
Distribution capital expenditures = 70%
Voltage (kV)2
Transmission Line
Substation
Distribution Line
# Reported Projects
Projects Analyzed
8.32 2 15 1 34 19 25 4
35 (D) 5
35 (T)  1 69 11 9 7
115/138 10 6
161  3
230  2
345
500
Total Expenditures
$594,905,520
$523,190,241
$98,226,929
$66,753,781

3. 2014 Transmission Projects – Cost Summary
Voltage
Geography
Construction
Structure
Purpose
Cost per Line Mile
Cost per Circuit Mile
Cost per Structure
Line Miles
Circuit Miles
Structures
Total Cost 69
All
$323,827
$1,482,006
$44,952
38.45
8.40
277
$12,451,812
Rural
Single Pole
Wood
Rebuild
$113,814
$16,268
13.15 92
$1,496,658
Relocate
$6,181
$3,931
15.90 25
$98,270
Steel
New
$1,316,183
$87,667
7.46
112
$9,818,722
$482,004
$9,640
0.20 10
$96,401
Suburban
$380,195
$21,122
1.00 18
Urban
$96,547
$4,345
0.72 16
$69,514
Mixed
$22,365,985
$123,013
0.02 4
$492,052
115
$999,757
$1,667,322
$85,843
84.92
50.92
989
$84,898,358
$499,430
$38,680
34.00
439
$16,980,635
$5,305,326
$78,696
0.09 6
$472,174
$1,093,713
$125,560
37.54
327
$41,057,998
$1,653,808
$74,597
2.12 47
$3,506,074
$1,477,091
$125,257
$3,131,434
$1,184,241
$46,383
3.29 84
$3,896,153
Concrete
$2,420,395
$349,228
2.02 14
$4,889,197
$2,931,736
$233,291
3.74
$10,964,694
161
$839,910
$838,353
$66,863
29.61
29.67
372
$24,873,102
$1,088,039
$1,083,673
$80,274
13.65
13.70
185
$14,850,650
$349,074
$31,887
13.98
153
$4,878,664
$1,254,764
$109,941
1.84 21
$2,308,765
$19,026,993
$218,079
0.15 13
$2,835,022
230
$1,137,696
$205,206
78.10
433
$88,854,040
$1,074,051
$170,058
17.10
108
$18,366,276
$1,155,537
$216,885
61.00
325
$70,487,764

4. 2015 Transmission Projects – Cost Summary
Voltage
Geography
Construction
Structure
Purpose
Cost per Line Mile
Cost per Crkt Mile
Cost per Structure
Line Miles
Circuit Miles
Structures
Total Cost 35
Suburban
Single Pole
Mixed
New
$4,360,307
$186,870
0.30 7
$1,308,092 69
All
$1,336,010
$1,308,955
$79,017
48.38
49.38
818
$64,636,177
Steel
$452,185
$422,299
$56,047
14.13
15.13
114
$6,389,377
Rebuild
$1,590,909
$83,460
26.65
508
$42,397,731
$2,085,404
$80,863
7.60
196
$15,849,069
138
$1,540,312
$1,482,872
$534,472
32.27
33.52 93
$49,705,883
Rural
$1,765,082
$329,076
16.22 87
$28,629,633
$500,714
$495,805
$1,011,443
12.12
12.24 6
$6,068,656
Urban
$5,827,434
$2,913,717
1.13
2.26
$6,585,000
$3,008,069
2.80
$8,422,594
161
$931,622
$795,128
$114,491
28.02
32.83
228
$26,104,051
230
$1,768,770
$1,345,619
$244,552
31.80
41.80
$56,246,879
$1,500,850
$243,193
17.50
108
$26,264,868
$435,667
$26,762
4.30 70
$1,873,370
$2,810,864
$1,405,432
$540,551
10.00
20.00 52
$28,108,641
345
$1,658,983
160.00
$265,437,243
500
$1,457,364
$322,983
41.00
185
$59,751,916

5. Transmission Standards
The group of projects used in the analysis are built nearly exclusively using steel structures. In 2015 (2014 projects) the mix of structure material was much more balanced with lower voltages using wood and higher voltages being built primarily with steel and concrete.
Voltage Class
Total Structures
Structure Material
(kV)
Wood
Steel
Concrete
Other 35 7 2
29% 5
71% 0% 69
818 1%
811
99%
115 93
100%
161
228
230
500
185
2015 Total
1561 9
0.6%
1552
99.4%
2014
2083
249
12%
993
48%
816
39% 25 3

6. Transmission Design and Cost Observations
Average costs (per mile and per structure) should generally increase with higher voltage. Conversely, span lengths decrease with higher voltages. However, for this year, a few outliers in a relatively small database distorted the averages. Also, different than last year, many of the projects across the voltage levels were constructed in suburban areas.
Voltage Class
Structures
Average Cost
Geography (# of projects)
(kV)
(per mile)
Line Mile
Structure
Rural
Suburban
Urban 35 23
$4,360,307
$186,870 1 69 17
$1,308,955
$79,017
7.5 .5
138 4
$1,540,312
$534,472 2 3
161 8
$931,622
$114,491
230 7
$1,768,770
$244,552
500 5
$1,457,364
$322,983

7. 2014 Substation Projects – Cost Summary
The list of substation 2014 projects used for the analysis was pared down to include larger projects (based on total cost) with a representative range of high side voltages and installed MVAs.
Project Number
Total Cost
High Side Voltage
Low Side Voltage
Installed MVA
Cost per MVA
Power Transformers
>500 kV Breakers
230 kV to 499 kV Breakers
100 kV to 229 kV Breakers
Line Terms
27S-1404
$27,485,981
230
115
400
$66,252 1
N/A 3 8 7
27S-1403
$12,477,361
161 69
100
$122,654 4
48S-1415
$3,162,367 46 40
$79,048
42S-1401
$8,179,549 25 80
$102,244 2
42S-1404
$11,549,516 21
$533,940
42S-1403
$3,669,735
10.50
$330,088
42S-1406
$30,818,020 20 60
$377,675
42S-1407
$6,662,677 12
$166,567
27S-1405
$10,536,478
$418,706 6 10
48S-1404
$3,627,763
$120,833
48S-1408
$2,979,424
$110,299
47S-1426
$573,795
22.40
$25,616
47S-1408
$802,540
12.50
$64,203
27S-1407
$3,384,780
$135,391

8. 2015 Substation Projects – Cost Summary
The list of substation projects used for the analysis includes larger projects (based on total cost) with a good range of high side voltages and installed MVAs.
Project Number
Total Cost
High Side Voltage
Low Side Voltage
Installed MVA
Cost per MVA
Power Transformers
>500 kV Breakers
230 kV to 499 kV Breakers
100 kV to 229 kV Breakers
No. <100kV Breakers
Line Terms 3
$36,138,423
230 13
150
$240,923 2 4 9
3500 7
$7,354,648
161 46
125
$58,837 8
$3,521,175 25 30
$117,373 1 10
$5,931,704
138 36
100
$59,317 11
$8,203,055
$82,031
$6,488,108
13.8 40
$162,203 14
$5,200,000 12 50
$104,000 15
$11,718,577
115
250
$46,874 16
$39,700,000 56
$708,929 17
$1,523,691 69 20
$76,185 18
$1,324,599
$66,230 19
$1,495,363
$74,768
$1,220,735
$61,037 21
$1,216,799
$60,840 22
$4,924,488 34
9.375
$525,279 23
$8,392,017
$2,797,339

9. Distribution Projects – Cost Summary
There are many more permutations of design for distribution than for transmission incuding blends of overhead and underground facilities. Average cost per structure is likely distorted by reconductor only projects.
Voltage
Geography
Structure
Purpose
Cost per Crkt Mile
Cost per Structure
Circuit Miles
Structures
Total Cost
8.32
All
$756,510
$61,411
2.76 34
$2,087,968
Rural
Wood
New 15
$843,747
$41,319
67.58
1380
$57,020,405
$369,146
$25,245
8.48
124
$3,130,358
Suburban
$464,931
$21,035
25.20
557
$11,716,260
Urban
$1,156,738
$43,465
18.60
495
$21,515,327
Concrete
$1,151,038
$646,774
11.80 21
$13,582,244
Mixed
$1,579,289
$102,361
3.50 54
$5,527,511
R,S
$309,741
$12,005
5.00
129
$1,548,705 25
$257,022
$201,334
11.75
$3,020,005
$3,719,172
$92,979
0.25 10
$929,793
$181,758
$418,042
11.50 5
$2,090,212 35
$737,175
$11,261
2.49
163
$1,835,565
$829,070
$28,603
0.69 20
$572,058
Steel
$701,948
$8,836
1.80
143
$1,263,507
15, Underground
$218,332
2.35
$513,081
$743,920
0.20
$148,784
$169,440
2.15
$364,297
15, Mixed (OH & UG)
$554,603
$72,745
7.87 60
$4,364,725
$898,596
$100,942
3.37 30
$3,028,267
$296,991
$44,549
4.50
$1,336,458

10. Correlation Variables
Relationships of Substation Cost Data to other Project variables for 2015 Project database
For the 2015 program, substation capital cost correlated well with installed MVA. Companies report using historical costs to generate budget or preliminary level budgets. Given a statistically adequate database, a relatively accurate estimating model can be created.
Correlation Variables
Correlation
Data Source
MVA Installed v. Capital Cost/MVA
Sample Projects Only
Voltage v. Capital Cost/MVA
Capital Cost v. Installed MVA
New station projects
Capital Cost v. Voltage

11. Relationships of Substation Cost Data to other Project variables
Correlating the same variables this year has not generated the same positive results. Additional analysis will be done as the database grows.

12. Relationships of Substation Cost Data to other Project variables – 2014 and 2015 projects combined
The correlation ( )of the combined data set is OK but the regression isn’t good. Going forward, it will be important to improve the project information used in the analysis as well as to increase the number of projects in the database.

13. Project Cost Analysis – observations
Transmission and substation costs increase with voltage and installed MVA respectively.
Transmission span lengths increase with increasing voltage lines.(fewer structures per mile)
Lines were constructed more with steel and concrete than with wood.
Substation costs correlated well with installed MVA in Additional analysis is needed on the 2016 data. Larger project databases will be needed to increase statistical significance.
The complexity and cost of added appurtenances (breakers, line terminations, security, etc.) need to be factored into the analysis in order to fully define cost relationships.
Follow-up cost analysis would benefit from a more detailed description of the work and breakdown of project costs including, for example, cost sources (engineering, material, construction labor, fleet/equipment, overheads, etc.)
Distribution project cost analysis requires much more detailed project information (description and cost data) to clearly define the project parameters against which cost is compared.

14. Thank you for your Input and Participation!
Your Presenters
Ken Buckstaff
Debi Cook
Gene Dimitrov
Rob Earle
Dave Canon Dave Carter Dave Weiler
About 1QC
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