Benefits of AGCC
While utility colocation within the ROW is technically feasible, installations have typically been developed and executed on a case-by-case basis without a comprehensive and strategic commercial, technical, and financial approach. This fragmented process has increased time and resource demands, created inefficiencies, and restricted the ability to scale efforts effectively. It also misses opportunities for related business and economic development in adjacent parcels.1
The math is simple: when lease fees beat total traditional lifecycle costs (i.e., construction, maintenance, replacement, etc.), the AGCC model becomes the clear and logical economic winner. Efficient colocation is expected to create a magnet for new business development along critical corridors, compounding the long-term economic benefits for utility providers. The AGCC model introduces a new alternative without eliminating existing traditional project options.
Explore the drop-downs below to learn more about the key benefits of supporting the coordinated and efficient development of linear utility infrastructure in the transportation ROW.
1. See the Department of Energy's National Transmission Needs Study for more information.
In contrast to conventional colocation initiatives, AGCC enables macro-level cost savings and expedited project delivery, leading to lower costs and increased utility deployment to meet the needs of both the public and industry. The program minimizes the need for new ROW acquisition and reduces development costs.
Land adjacent to highways and railways outside of the ROW, often undervalued due to environmental factors like noise, can be repositioned for high-value uses such as data centers, advanced manufacturing facilities, or distribution hubs, leading to increased economic activity and tax revenues for states and localities. It also frees up higher value land situated further from highways and railroads for residential or mixed-use development.
AGCC seeks to enable value creation by encouraging technical efficiencies, such as shared trenching or tunneling, standardized engineering protocols, and consolidated procurement, that provide a faster and less expensive alternative to existing development options.
ROW leasing and utility hosting arrangements can open new, recurring, reliable revenue channels. Revenues may be reinvested in upgrades along the 160,000 centerline miles of the National Highway System and the 140,000 route miles of the U.S. freight rail network.
Colocating businesses and activities that use significant utilities along one line prevents the need for extensive, scattered grid transmission upgrades and the need to coordinate with too many landowners. This strategic utilization of ROWs and clustering can minimize the total capital investment required to provide reliable power, potentially lowering transmission costs and creating downward pressure on residential user rates.
By focusing on existing transportation ROWs, AGCC utility colocation projects would be treated as brownfield developments, rather than greenfield expansions. This approach reduces environmental and community disturbance, leverages existing infrastructure (roads, utilities, grading), and lowers remediation and construction costs.