We're Not Undergrounding Fast Enough. How Utilities Can Invest without Blowing the Budget

The U.S. is facing a growing crisis: major energy outages have nearly doubled over the last decade, costing the economy more than $150 billion annually. Our grid—designed for a different century—is cracking under the pressure of new technologies and climate extremes. The next big blackout could be caused by anything from storms to the strain of new transmission needs to support renewable energy.

That’s why utilities like PG&E, Duke Energy and Florida Power & Light are going underground and setting aggressive goals to bury more of their distribution networks in the next 10 years – but the rest of the industry needs to follow suit. We’re only at 20% underground today, which is not fast enough to support growing energy demands and grid modernization efforts. If we don’t accelerate the undergrounding rate, our grid security will suffer.

Often, the main roadblock to undergrounding comes down to the perceived cost. On paper, the installation cost of undergrounding is significantly more expensive than an overhead installation. However, what this perspective discounts is the operating cost of maintaining aboveground cables. For example, utilities spend up to $8 billion each year just on clearing vegetation from overhead lines, in addition to high costs of damage resulting from disasters like wildfires and hurricanes.

The business case for undergrounding becomes clear when considering the total cost of ownership, as well through making long-term decisions geared at optimizing the investment such as selecting future-proof materials, leveraging digital capabilities and diversifying into fiber.

Choosing the Right Materials

Optimizing the value of constructing an underground system requires both long- and short-term considerations. While direct burial of power cables may seem like the most cost-effective option, it can undermine long-term sustainability and lead to cable deterioration, increasing the risk of outages over time.

Traditionally the industry has relied on PVC stick conduit which has a proven track record for constructing multi conduits (conduit banks) which can be directly buried or concrete encased. However, HDPE coiled conduit has since emerged as a material that can both lower the total cost of ownership of installation as well as extend the lifetime well beyond other solutions: it’s available in long lengths, resistant to temperature fluctuations, highly durable and stands up under compression.

HDPE’s inherent flexibility helps lower construction costs by enabling power cables to be factory installed into the conduit as it is being extruded and coiled onto reels. Cable-in-Conduit (CIC) is well-suited for burial in unobstructed routes and also simplifies transportation and storage. Due to its long lengths, it is particularly effective for trenchless installation methods such as plowing and horizontal directional drilling (HDD) — both of which minimize surface disruption and reduce community rehabilitation costs.

Horizontal directional drilling (HDD)

In the long term, HDPE conduit provides a permanent pathway for protecting and extending the life of buried power cables while allowing future replacement at a lower cost. This future-proofing aspect makes it a smart investment for utilities looking to build resilience and reduce lifecycle maintenance expenses

Leveraging Digital Capabilities

Grid modernization isn't just about building more efficiently; it's also about operating in the most efficient manner. By installing scalable conduit infrastructure, utilities can simultaneously deploy fiber for monitoring and controlling critical electrical assets. Power companies can use fiber alongside power cables enabling digital capabilities, while saving construction costs allowing maximization of their investment. Accurate, real-time data allows utilities to balance supply and demand more efficiently to prevent potential cable damage.

In addition, fiber optic sensing, which is best used in underground cables, provides a wealth of information for increasing cable protection. It can monitor temperature fluctuations, strain or vibrations, notifying operators when construction is digging too close to a power line to proactively prevent damage and maintain cable health.

One example of a utility that has seen success is Indianapolis Power & Light Company. Installing fiber optic cable for sensing throughout their underground network in downtown Indianapolis has allowed the company to receive real-time notice of activity near powerlines, such as the removal of man covers or fault detection.

Beyond its functional SCADA use by monitoring the health and efficiency of a utility network, additional strands from that same fiber cable can be used to diversify a power company's business, also bridging the digital divide in the process. By deploying fiber alongside, or even within, their power footprint, utilities can optimize the value of existing rights-of-way and customer service platforms to diversify into subscriber broadband, thereby increasing their average revenue per user with minimal additional expense or effort.

Indeed, power companies can make a major contribution toward bridging the digital divide that exists in the U.S. today. One of the biggest barriers to connecting underserved communities is insufficient middle mile connectivity, which connects localities to the internet at large. Utilities are already in the business of connecting these communities, albeit with a different service. By installing fiber along with their power distribution lines, utilities can offer an appealing opportunity for Internet Service Providers to lease dark fiber, thereby enabling cost-effective fiber-to-the-home (FTTH) deployment in underserved communities.

Modernizing America’s grid is not just a matter of convenience—it’s a necessity for resilience, reliability and future growth. Undergrounding power lines is a critical step forward, and it’s no longer a question of if but how quickly. By choosing smarter materials like HDPE conduit, harnessing the power of real-time digital monitoring and diversifying into commercial fiber, utilities can accelerate undergrounding in a way that’s both economically sound and future-proof.