No one can argue that America’s grid needs modernization. Aging infrastructure, surging demand, and multiplying bottlenecks combine to make that case crystal clear. So clear the US Department of Energy recently launched the Speed to Power initiative to accelerate large-scale grid infrastructure project development.
What's less clear to many grid operators is how exactly to deliver on capacity expansion goals while keeping project costs in check. Balancing grid efficiency and reliability with fiscal responsibility is critical at a moment where many Americans struggle with rising energy costs, and 1 in 20 households went into collections for their utility bills.
Of course, safe, secure, and affordable energy delivery depends on safe, secure, and affordable conductor technology. But in an evolving transmission conductor marketplace, grid operators may be confused by their options: should they stick with older industry go-tos ACSR or even ACSS, which have their flaws but are seen as being cost-efficient, or adopt next-generation AECC conductors (Aluminum Encapsulated Carbon Core), which offer superior performance but are perceived by some as being too expensive?
The answer becomes clear when you recognize the misperception at play here. Using AECCs is not more expensive than their older counterparts. In fact, these advanced conductors generate net savings in both reconductoring and new-build applications while providing the capacity headroom utilities desperately need.
Key AECC design features drive affordability
Next-generation advanced conductors solve the problems of previous technologies through innovative design. Made with carbon fiber cores that provide exceptional strength-to-weight ratio, their design enables the use of significantly more aluminum conductor material without increasing overall weight. And the fully annealed aluminum delivers superior conductivity compared to the hard-drawn aluminum in all other traditional conductors.
Together, these features supercharge performance and drive more cost-effective operations: AECCs deliver two to three times the capacity of traditional ACSR, 50 percent lower line losses, minimal thermal sag, and greater strength in reconductoring and new-build projects alike.
Reconductoring: Maximizing existing assets with advanced conductoring
Current reconductoring projects often use ACSS, but this approach comes with an often hidden cost: substantial thermal sag when operated at higher temperatures. Using ACSS therefore typically requires costly structure modifications including raised heights, strengthened crossarms, and foundation work.
AECC, however, maintains low thermal sag even when operating at higher temperatures. This is a big reason why using AECCs can achieve total cost reductions of 30–40 percent compared to conventional reconductoring approaches. Plus, avoiding structure work dramatically reduces construction duration, minimizing both labor costs and service disruptions to customers.
Real-world deployments validate these economics. Montana-Dakota Utilities completed an eleven-mile project on its 230 kV transmission line that increased operating ampacity by 78 percent while delivering $1.8 million in savings and finishing a full year ahead of schedule.
Similarly, Salt River Project's recent 8.5-mile project in Phoenix maintained the 50-year remaining service life of existing structures while eliminating outage-related expenses and achieving needed capacity increases for growing demand.
New builds: How AECCs optimize long-term investments
The case for advanced conductors extends beyond reconductoring. With the US DOE forecasting that the country could need to double the intraregional transmission capacity and potentially quintuple the interregional transfer capacity by 2035, new-build projects represent urgent long-term investments. The conductors specified in project proposals today will determine performance capabilities for decades.
In new construction, conductors usually account for just 5 percent or less of total project costs, with structures and construction driving the budget. Advanced conductors enable shorter and fewer structures, creating cascading savings through reduced steel requirements, smaller foundations, decreased construction time, and lower labor costs. Fewer structures also mean reduced land acquisition needs and lower annual property tax obligations. Combined, these factors can yield 10–20 percent reductions in total project costs.
Basin Electric's 27-mile, 230 kV line in North Dakota demonstrates these advantages. Completed in January 2023 with AECC conductoring, the project increased ampacity by 76 percent compared with traditional conductors, improving capacity headroom while reducing structure count by 15 percent. The project came in under budget despite weather delays.
Beyond Day One CapEx
Whether in reconductoring or greenfield projects, the financial case for advanced conductors extends well past initial installation. These technologies generate ongoing value throughout their operational life, with nationwide deployment potentially saving consumers $2.2 billion annually through line loss reduction alone.
AECC’s increased capacity headroom is just as valuable. With demand projections consistently revised upward due to electrification, AI expansion, and manufacturing growth, built-in capacity margin protects against premature obsolescence. This eliminates scenarios where conductors require replacement within five to ten years because load growth exceeded initial specifications.
Finally, advanced conductors perform better in extreme weather, enhancing grid resilience and reducing outage costs. AECCs resist ice and wind damage, maintain clearance during heatwaves, and offer improved wildfire survivability. Additional capacity gives operators more flexibility to reroute power during emergencies and reduces system stress during peak demand periods when failures are most likely.
No single technology fits every transmission challenge. But advanced conductors have matured from specialized applications into versatile solutions that deliver higher capacity at lower total cost. For utilities building infrastructure that will serve for decades, these conductors offer a practical way to meet today's needs while preparing for tomorrow's growth.