Climate Connections Grid upgrades are contributing to electricity price increases, research finds
Feb 23, 2026
Ryan Ledick, an energy analyst at the Brattle Group, explains drivers behind rising electricity costs. He breaks down complex research findings. He describes why aging distribution equipment needs replacement. He discusses how climate-driven storms and wildfires raise restoration and grid-hardening costs.
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Distribution Upgrades Are Raising Rates
- Rising electricity prices are driven more by distribution system costs than by generation costs.
- Lawrence Berkeley National Laboratory and Ryan Ledick note upgrades to lines, poles, substations and disaster hardening are the main drivers.
Aging Infrastructure Meets Climate Risks
- Much of the U.S. grid is aging, with some parts around 80 years old, requiring replacement to maintain reliability.
- Utilities are replacing equipment and investing in burying lines and more durable gear as climate-driven storms and wildfires increase risks.
Invest In Resilient Grid Hardware
- Prepare for climate disasters by investing in resilient infrastructure like buried lines and durable equipment.
- Utilities already spend heavily on these measures to reduce outages and restore power faster after storms and wildfires.