Power Insights today announced the release of its 2026 North American Electric Distribution Market Forecast, offering the industry’s most comprehensive, data-driven analysis of grid investments across North America from 2015 through 2030.
The forecast leverages Power Insights’ rigorous quantitative, bottom-up, utility-by-utility and project-by-project methodology, incorporating insights from over 200 electric utilities across the U.S. and Canada. This report provides stakeholders with actionable intelligence to navigate changing market and policy conditions that are reshaping the electric grid.
North American distribution capital expenditure grew more than 10% in 2025, a third straight year of double-digit growth. Multi-year resilience programs were the primary driver, while cost inflation also increased nominal spending. Looking ahead, annual electric distribution spend growth is expected to moderate through the rest of the decade. Utilities still face substantial distribution grid resilience and reliability needs, but rising electricity prices and affordability concerns, competition for capital from generation and transmission, and slowing housing starts will put downward pressure on growth.
Key Highlights of the 2026 Forecast
- Historical and Forecasted Spend (2015–2030): Segment-level analysis across investor-owned utilities, government-owned utilities, cooperatives, and Canadian utilities
- Distribution Segment Analysis: Capital expenditures for the largest IOU holding companies across distribution poles, substations, overhead conductors, underground conductor and conduit, transformers, and more
- Utility-Level Analysis: Rankings and expenditures of the top IOUs across key distribution market segments, analysis of recent electric rate cases, and more
- Economic Factors: Insights into the key economic factors and drivers of distribution spend, including resilience programs, customer growth, housing starts, inflation, electricity prices, and how these forces constrain or accelerate grid investments
“Distribution spending growth is clearly moderating after more than six years of heady growth. While Power Insights does not expect spending to decline, we anticipate a noticeable slowdown driven by sluggish housing starts, competition for capital from transmission and generation projects, and regulatory pressure to keep electricity price increases as low as possible. There will be state and regional differences, but the overall trend is toward slower growth in electric distribution capital spending.”
– Jean Rollins, Senior Advisor at Power Insights
For more information about Power Insights’ North American Electric Transmission & Distribution Market Forecasts, please contact:
Media and Information Contact:
Power Insights
Email: Forecasts@power-insights.com
About Power Insights
Power Insights is a strategy and analytics firm specializing in energy infrastructure, utilities, and the energy transition. With deep expertise in commercial diligence, data-driven research, and strategic advisory, the firm supports clients across critical infrastructure and energy markets in navigating complex challenges and opportunities.
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