Quick Take: Smart meter vendors are glum these days now that the stimulus monies are played out. But a new survey from Edison Electric Institute (EEI) reveals that the transmission and distribution (T&D) sector is quite healthy. In 2011, utilities and transmission companies invested a record $30.3 billion. That total is a healthy 8.4% higher than in 2010. A little more than one third went to transmission, with the balance to distribution.

And things look good for the future as well. EEI predicts that 2012 will see T&D investments jump to $34 billion. And this is without factoring in municipal utilities and rural co-ops, whose expenditures are not covered by the EEI survey. - By Jesse Berst

Mostly replacing and upgrading existing transmission lines, building new lines to accommodate load growth in specific regions of the country and bringing new generation sources like renewables into the grid.

That $30.3 billion represents an 8.4% increase in transmission expenditures over 2010, and an increase of 13% more on distribution, according to the EEI Annual Property & Plant Capital Investment Survey. After accounting for a 4.7% increase in transmission-related construction costs in 2011, actual investment grew 3.7% over 2010; and after similar cost adjustments distribution investment increased by 7.9%.

Also, after adjusting for cost increases transmission investment has grown 96% over 2000 levels, for a cumulative investment of $97.4 billion over that period.

The survey also noted that utilities gained from the investments in that it helped them speed up development of automated meter infrastructure and other smart grid distribution projects. Also, several companies spent more on distribution in 2011 for line replacement or repair where severe weather had damaged them.

As Tom Kuhn, EEI president, explained it "Looking beyond 2011 the industry is projected to spend more than $94 billion on capital expenditures in 2012 ($13-$14 billion on transmission; $20 billion for distribution). During the last 10 years, the industry's investment in transmission and distribution infrastructure has doubled."

While the numbers certainly indicate a trend, EEI qualified them with the statement that expenditures, particularly those related to distribution, have varied significantly through the years because that sector is closely linked to economic and population growth. Also, line restoration and repair costs incurred by weather damage can have a strong impact on expenditures depending on storm severity and frequency from year to year.

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Jesse Berst is the founder and chief analyst of Smart Grid News.com, the industry's oldest and largest smart grid site. A frequent keynoter at industry events in the U.S. and abroad, he also serves on advisory committees for Pacific Northwest National Laboratory and the Institute for Electric Efficiency. He often provides strategic consulting to large corporations and venture-backed startups. He is a member of the advisory boards of GridGlo and Calico Energy Services.

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