Underground power lines can be the least cost option when study biases are corrected

Abstract After nearly every major storm that causes widespread power outages, there are calls for undergrounding power lines in the United States. It is often pointed out that most other developed countries have significantly better power reliability due to the prevalence of underground networks. However, many studies of U.S. electric utilities have concluded that a broad undergrounding mandate would be too expensive and undergrounding can only be justified when factoring customers’ willingness to pay more for underground lines. We show that misleading national comparisons and improperly conducted U.S. studies have led to false conclusions about the economic efficiency of undergrounding power lines. Once data are standardized and properly disaggregated, the case for undergrounding improves significantly. We offer a basic methodology for conducting more accurate power line studies.