California utilities race to bury power lines to cut wildfire risk

Article Sponsored by:

CMiC Global

CMIC Global Logo

Since 1974, CMiC has been a global leader in enterprise software for the construction industry. Headquartered in Toronto, Canada, CMiC delivers a fully integrated platform that streamlines project management, financials, and field operations.

With a focus on innovation and customer success, CMiC empowers construction firms to enhance efficiency, improve collaboration, and make data-driven decisions. Trusted by industry leaders worldwide, CMiC continues to shape the future of construction technology.

Read More About CMiC: 

Utility crews trenching to bury power lines in a California neighborhood with smoky hills in the distance

California, September 6, 2025

News Summary

Major investor-owned utilities in California are accelerating programs to place neighborhood distribution lines underground to reduce wildfire ignitions and improve grid resiliency. Projects range from targeted community rebuilds to long-term efforts costing billions, with per-mile estimates typically cited around $3–$5 million but varying widely by terrain and complexity. Regulators, lawmakers and consumer advocates are clashing over who should pay as most costs are recovered through customer rates. Debates persist over cheaper alternatives like covered conductors, fast-trip sensors, vegetation management and microgrids, while permitting, trenching and long timelines complicate delivery.

California utilities speed up large-scale undergrounding of power lines to cut wildfire risk; projects carry heavy costs and political fights

Utilities in California are pushing to bury large sections of local distribution power lines to lower the chance that electrical equipment will start wildfires. These efforts, already moving ahead in several places, are costly and are being paid for largely by customers, creating sharp debates among utilities, regulators, lawmakers and consumer advocates.

Top line: safety drive meets big price tags

The move to underground distribution lines is being framed as a top tool to prevent ignitions from above-ground lines and to reduce the need for disruptive power shutoffs. Work now under way and planned across multiple investor-owned utilities is measured in hundreds to thousands of circuit miles, and price estimates range from roughly $3 million to $5 million per mile for burial projects. One large rebuild plan that would bury more than 150 circuit miles carries an estimated price tag approaching $1 billion.

Immediate impacts on customers and bills

Utilities are recovering many of these project costs through rate cases and capital-expenditure rules that let them add large infrastructure spending to the customer bill. That approach has helped push electricity rates upward: in the last decade retail rates at major investor-owned utilities rose by as much as 110%, with increases exceeding 50% in just the past three years for some customers. Undergrounding costs are a growing piece of that trend and regulators have approved thousands of miles of targeted projects that will further add to capital spending in the coming years.

How the programs differ and why alternatives matter

Utilities are not identical in how they plan and price buried lines. One utility reports a goal of burying thousands of miles over time and has completed several hundred miles since 2021. Another utility is planning a targeted multi-hundred-mile rebuild after recent fires and emphasizes community meetings, microgrids and mixed strategies. Some smaller municipal utilities are proceeding more slowly.

Cheaper alternatives exist. Covered conductors — insulated overhead wire — can be installed faster and at a fraction of the cost of undergrounding, with analyses showing substantial reductions in ignition risk at roughly one-third the cost. Sensors and automatic trip systems that quickly shut off lines during faults also reduce fire starts and are often far less expensive. Vegetation management and prescribed burning remain critical complementary tools.

Regulatory and political tensions

The way utilities make money under long-standing capital-recovery rules creates a tension between picking the most cost-effective tool and building bigger projects that boost capital investment. Analysts and advocates say this can skew choices away from cheaper options. Lawmakers proposed bills this year intended to rein in some costs or require more cost analysis in wildfire plans, but political pushback from utilities and some unions prevented those bills from becoming law.

Community effects and examples

In mountain and older neighborhoods that still rely on overhead wires, crews are digging trenches, laying conduits and removing poles block by block as part of ongoing projects. Some homeowners and small businesses report sharp increases in their monthly bills and worry about affordability. One small downtown grocery owner calculated a double-digit percent rise in annual electricity costs, saying bills can run into the thousands for a single month.

What regulators are doing

State regulators have begun comparing the cost-effectiveness of different wildfire mitigation strategies and recently approved fewer miles of undergrounding than one utility requested. Newer fire-hazard maps and changing climate conditions are also reshaping where areas are considered high-risk, which affects where burial is prioritized. Some state executive actions have eased permitting to speed rebuilds after major fires and encouraged burying lines where practical.

Where this leaves planning and timelines

Underground works are often long projects. Covered conductor upgrades typically take one to two years to install, while undergrounding projects can run two to four years or longer because of trenching, coordination with other buried utilities and road repaving. When neighborhoods have already been damaged by fire, replacing destroyed overhead lines with buried lines can sometimes shorten timelines and lower costs compared with retrofitting intact streets.

Cost-sharing and funding questions

Utilities say they are seeking federal, state and philanthropic funds to avoid placing some upfront connection or property-connection costs directly on homeowners. Under current tariffs, customers may face fees to connect individual properties to new underground circuits, with estimates for individual connections ranging into the thousands of dollars in some places.

Bottom line

Burying distribution lines is widely viewed as an effective way to reduce wildfire risk and improve grid reliability, but it comes with heavy costs and trade-offs. State regulators, utilities, community groups and lawmakers are continuing to debate the right mix of strategies — from buried lines to insulated wire and sensors — to keep people safe while trying to limit the impact on household and business energy bills.


Frequently asked questions

What is undergrounding?

Undergrounding is the process of moving overhead distribution power lines below ground in conduits or ducts to reduce the chance that wind, trees, or equipment will spark fires.

Why are utilities burying lines now?

Utilities are accelerating burial projects to lower wildfire risk, improve reliability, and reduce the need for emergency power shutoffs during extreme fire-weather events.

How much does it cost to bury power lines?

Costs vary widely, with common estimates for distribution lines in the range of $3 million to $5 million per mile, though some projects can be lower or higher depending on local conditions and whether rebuilding follows a fire.

Are there cheaper alternatives?

Yes. Covered conductors and fast-fault detection systems are much less expensive per mile and can significantly cut ignition risk in many settings.

Who pays for undergrounding?

Most costs are recovered through utility rates paid by customers. Some projects may be partially funded by federal, state or private grants to reduce the direct burden on residents.

Will undergrounding lower my electric bill?

Undergrounding usually increases capital spending, which can raise rates. Programs seek to balance safety, reliability and cost, and regulators sometimes limit what projects are approved to protect customers.

How long do underground projects take?

Timelines vary. Covered conductor upgrades typically take about 16–24 months. Undergrounding often takes 25–48 months or longer, depending on permitting, trenching, and coordination with other infrastructure.

Key features at a glance

Feature Typical range / example Why it matters
Undergrounding cost per mile $3M–$5M High upfront cost, long timelines, fewer ignitions from overhead lines
Covered conductor cost per mile About one-third the cost of burial (roughly $800K–$900K) Lower cost, faster install, substantial risk reduction in many areas
Fast trip / sensor systems Lower-cost mitigation option Can quickly cut power on faulted lines and reduce fire starts
Miles already underground (statewide) About one-third of 230,000 miles of distribution lines Shows progress but also the scale of remaining overhead lines
Approved near-term burial projects Over 1,200 miles approved for one major utility in a recent rate case Indicates growing capital spending that will affect rates

Deeper Dive: News & Info About This Topic

Additional Resources

Construction TX News
Author: Construction TX News

TEXAS STAFF WRITER The TEXAS STAFF WRITER represents the experienced team at constructiontxnews.com, your go-to source for actionable local news and information in Texas and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the Texas Construction Expo, major infrastructure unveilings, and advancements in construction technology showcases. Our coverage extends to key organizations like the Associated General Contractors of Texas and the Texas Building Branch, plus leading businesses in construction and real estate that power the local economy such as Austin Commercial and CMiC Global. As part of the broader network, including constructioncanews.com, constructionnynews.com, and constructionflnews.com, we provide comprehensive, credible insights into the dynamic construction landscape across multiple states.

Article Sponsored by:

CMiC Global

CMIC Global Logo

Since 1974, CMiC has been a global leader in enterprise software for the construction industry. Headquartered in Toronto, Canada, CMiC delivers a fully integrated platform that streamlines project management, financials, and field operations.

With a focus on innovation and customer success, CMiC empowers construction firms to enhance efficiency, improve collaboration, and make data-driven decisions. Trusted by industry leaders worldwide, CMiC continues to shape the future of construction technology.

Read More About CMiC: 

Stay Connected

More Updates

Would You Like To Add Your Business?

WordPress Ads