The disparity between rural and urban customer densities creates significant cost challenges for rural utilities, making it financially unsustainable to continuously rebuild power distribution systems after severe storms
After the recent hurricane hit western North Carolina, the local electric utility, Duke Power, said that road conditions in some rural areas were so poor ie non-existent that full service restoration could take as long as two to three months. This reminded us that Entergy gave the same service restoration estimates for more remote parts of their Louisiana service area after also experiencing the damaging effects of a category 4 hurricane.
Related Italy's Largest Insurer Stops Coverage for Downstream Oil and Gas Let’s assume a modest storm restoration cost of $1 million in terms of urban versus rural customer impacts. Utility customers in the city might see a cost increase of $40 $1 million divided by 25,000 probably divided into twelve monthly payments, rendering this incremental expense as negligible.
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