The economics of aging infrastructure

Eventually, every system will age to a sustainable point at which repair and replacement costs driven by advanced equipment age and deterioration from long service will remain constant thereafter. The good news is that equipment data, condition assessment, prioritization, and management focus can significantly reduce costs, extend lifetimes, and improve reliability. The bad news is that even when optimized to the extent possible, in the long run, utilities will need more money in order to maintain their systems at the lowest life-cycle cost. Many regulatory agencies and customers will push back and insist that spending related to aging infrastructure be reasonably justified, but limiting a utility's ability to manage its aging equipment will eventually result in lower levels of reliability and higher rates in the future