of delay 2 Newton | From capital to delivery
The real cost
In most utility capital programs, performance is still primarily measured through traditional delivery metrics: • capital efficiency • schedule performance • delivery quality • time to energization These metrics remain important. But they are no longer sufficient on their own. Because in practice, a delayed project does not simply cost more. It delays revenue realization, rate base growth, industrial expansion, system capacity and broader economic activity. Across portfolios, these effects compound quickly. This is visible across US power markets. In PJM, tightening supply-demand conditions and slower infrastructure delivery have contributed to sharply rising capacity prices. At the same time, interconnection backlogs continue delaying projects already seeking access to the grid. The challenge is no longer theoretical. Today, large-load customers are making location decisions based on:
That framing matters Because the challenge is no longer simply allocating capital. It is allocating capital in ways that: • accelerate energization • unlock broader system capacity • maintain affordability • improve industrial competitiveness This breaks a common misconception. A day lost in construction is costly. But a day lost in: 1. development 2. permitting 3. interconnection 4. regulatory approvals …can be even more damaging when it delays an entire portfolio sequence. The question is where the next best dollar should go, how it improves the customer experience and how it lowers costs for customers.” Brian Savoy Executive Vice President and Chief Financial Officer of Duke Energy
• infrastructure readiness • transmission availability • energization timelines • permitting certainty
In several markets, utilities and economic development agencies are openly discussing whether infrastructure timing may become a gating factor for future industrial growth. At the same time, affordability pressure is increasing materially. Utilities are now balancing several competing priorities simultaneously:
• infrastructure expansion • customer affordability • regulatory expectations • reliability requirements
In reality, affordability is becoming one of the defining constraints shaping infrastructure sequencing and capital allocation decisions.
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