An S&P Global Market Intelligence analysis of the Federal Energy Regulatory Commission's Form 1 data shows that the cost of producing power in the U.S. has declined for electric utilities over the past decade. At the same time, transmission and distribution expenses have risen sharply.
Filed annually, FERC Form 1 reports are designed to collect financial and operational information from electric utilities and other entities that fall under the commission's jurisdiction.

From 2006 to 2016, the cost of producing power in the U.S. fell by almost 21%. In the most recent two-year period, 2014-2016, the decline was about 18%. The decline in costs over the 10-year period coincides with a period of flattening demand for electricity and low wholesale prices for energy.
Steam power production operation and maintenance, or O&M, expenses in the U.S. fell the most during that period,
Out of the individual line items from O&M expenses for steam production, operational steam allowance expenses, which include expenses related to the emissions of sulfur dioxide, showed the largest decrease, about 71%.
Power production and supply expenses for fuel types other than steam, nuclear and hydropower declined by almost 19% from 2014 to 2016. Hydropower production O&M expenses rose by 8% in this period, but in total, those expenses accounted for less than 1% of the total power production O&M expense in the past decade.

While power production became cheaper in the U.S., transmission and distribution costs rose. From 2006 to 2016 the cost of electricity transmission O&M climbed by about 87%. From 2014 to 2016, these costs increased by 16%.
On the distribution side, from 2006 to 2016 O&M costs rose by 38%.

A further breakdown of distribution costs illustrates that each sub-category has risen over the past decade. O&M expenses related to overhead lines and underground lines rose by 54% and 33%, respectively, from 2006 to 2016. Some of the reasons for higher overhead and underground line O&M expenses included maintaining overhead lines to avoid unsafe conditions, moving overhead lines underground to avoid wind and storm damage, improve electric infrastructure, and strengthening the distribution system to handle disasters like Superstorm Sandy in 2012.
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