How the System Works | Distribution Investment | Additional Resources

 
Electricity travels at nearly the speed of light, arriving at a destination at almost the same moment it is produced.  Unlike oil or natural gas in a pipeline, electricity cannot easily be stored.  It must be generated and delivered at the precise moment it is needed.  The nation’s electric distribution systems deliver power along millions of miles of lines to neighborhoods, businesses, and consumers.

How the System Works

After electricity is generated and transmitted, step-down transformers located in distribution substations reduce the voltage so it can be carried on smaller cables or distribution lines. 

• How the System Works
  Learn the steps involved in getting electricity to consumers.
• Power Outages
  Find out how power outages can affect distribution systems.
• Overhead vs. Underground Lines  
  Learn the costs and benefits of underground power lines.
• State Restructuring and Regulatory Policy Activities
  Electric distribution systems—including their rates and reliability—are subject to state regulation. Electric distribution systems—including their rates and reliability—are subject to state regulation. 

Distribution Investment

The distribution system includes substations, wires, poles, metering, billing, and related support systems involved in the retail side of electricity delivery. The need to expand our distribution infrastructure and install new distribution equipment to meet population and demand growth will require continued investment.

As electric companies invest in distribution system upgrades, they will be focused on new technologies to help them meet the increased demands of our digital society and to communicate more effectively with their customers. For example, advanced metering infrastructure (AMI) includes new communications networks and database systems that will modernize our nation’s electric grid and provide important benefits to electric companies and consumers.

According to a 2008 Report by The Brattle Group, electric companies will need to spend approximately $582 billion to strengthen our nation's distribution systems from 2010 to 2030, in order to maintain a reliable supply of electricity.

Additional Resources

• Smart Meters and Smart Metering Systems - A Metering Industry Prospective
• A Discussion of Smart Meters And RF Exposure Issues 
• Reliability Survey Reports 
• Transforming America's Power Industry: The Investment Challenge 2010-2030
  Prepared by The Brattle Group for The Edison Foundation, November 2008.