American electric utilities are expanding facilities investment to meet the strong demand for artificial intelligence and electric vehicles.
November 25, 2024, 10:37 AM GMT+9
Major U.S. utilities are planning significant facility investments in the electrical supply network over the next five years. This is due to the anticipated strong demand from data centers with artificial intelligence (AI) and electric vehicles (EV).
In the past few weeks, about 9 utility companies have upwardly revised their projected facility investment amounts for the three-year period starting in 2025 by an average of about 22%. According to Reuters' analysis, 4 of these companies experienced the largest increase in facility investment levels in history.
Evergy (EVRG.O), which provides electricity in Kansas and Missouri, raised its facility investment amount for the next five years by $3.7 billion (29.6%), marking the largest revision rate for the company since 2018.
American Electric Power, which supplies electricity to approximately 5 million people in 11 states in the USA, raised its facility investment amount by up to $54 billion (25.6%).
However, experts are concerned that plans to raise fees to offset cost increases may face regulatory barriers.
According to the U.S. Energy Information Administration (EIA), 58% of the rate increase plans submitted by public utility companies from early 2023 to August 2024 were approved by regulatory authorities.
In the past few weeks, about 9 utility companies have upwardly revised their projected facility investment amounts for the three-year period starting in 2025 by an average of about 22%. According to Reuters' analysis, 4 of these companies experienced the largest increase in facility investment levels in history.
Evergy (EVRG.O), which provides electricity in Kansas and Missouri, raised its facility investment amount for the next five years by $3.7 billion (29.6%), marking the largest revision rate for the company since 2018.
American Electric Power, which supplies electricity to approximately 5 million people in 11 states in the USA, raised its facility investment amount by up to $54 billion (25.6%).
However, experts are concerned that plans to raise fees to offset cost increases may face regulatory barriers.
According to the U.S. Energy Information Administration (EIA), 58% of the rate increase plans submitted by public utility companies from early 2023 to August 2024 were approved by regulatory authorities.
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