The American Society of Civil Engineers (ASCE) released its 2025 Report Card for America’s Infrastructure on March 26, 2025, noting improvements in several critical sectors due to recent federal investments, while also emphasizing ongoing challenges in resilience and long-term planning. It recommends that electric utility professionals should take note of key findings in the energy sector, where rapid demand growth, climate impacts, and investment shortfalls remain pressing concerns.

The energy sector received a D+, down from its 2021 rating of C–, with a note saying “infrastructure is in fair to poor condition and mostly below standard, with many elements approaching the end of their service life. Condition and capacity are of serious concern with strong risk of failure.”

Rising electrification, driven by electric vehicles (EVs) and expanding data centers, is accelerating demand. By 2030, an estimated 35 GW of additional electricity will be needed. The recommendation is for utilities to prepare for this unprecedented growth while also meeting federal and state net-zero emissions goals.

For over two decades, ASCE’s infrastructure assessments have underscored the need for increased investment to modernize and maintain essential networks. The latest report shows that the Infrastructure Investment and Jobs Act (IIJA), passed in 2021, has positively influenced nearly half of the 18 assessed infrastructure categories. This has led to an overall grade improvement from C- to C. However, despite these gains, ASCE warns that the nation’s infrastructure remains vulnerable due to aging systems, extreme weather events, and inconsistent funding.

The report notes that transmission capacity must double to integrate new renewable energy sources effectively. While the IIJA and Inflation Reduction Act (IRA) have directed significant resources toward grid modernization and renewable energy, weather-related disruptions continue to pose risks. Since 2000, 80 per cent of electricity outages have been weather-related, with most occurring in the last decade. Strengthening distribution networks and interregional transmission connections will be critical to ensuring reliability.

Extreme weather events are causing increasing disruptions across the energy sector. In 2024 alone, the US experienced $27 billion worth of disasters, leading to 568 deaths and over $182 billion in damages. According to a 2024 study, every dollar spent on resilience and preparedness saves communities $13 in post-disaster recovery costs.

ASCE recommends that utilities and policymakers prioritize modernizing infrastructure with resilience-focused designs. This includes adopting the most up-to-date construction codes and standards, integrating asset management practices, and leveraging nature-based solutions to enhance system durability. 

To address these pressing infrastructure needs, ASCE outlines several key policy actions:

  • Maintain IIJA investment levels beyond 2026 and fully fund authorized programs.
  • Ensure utilities charge rates that reflect the true cost of maintaining and improving infrastructure.
  • Expand public-private partnerships and explore additional financing mechanisms.
  • Incorporate life-cycle cost analysis in infrastructure planning to optimize long-term investment value. 

For electric utility professionals, the 2025 ASCE report underscores the need for continued investment in grid modernization, transmission expansion, and resilience measures. Utilities must balance the growing demand for electricity with the challenges of integrating renewable energy sources, mitigating climate-related disruptions, and securing sustainable funding for long-term infrastructure improvements.

While recent federal investments have set the stage for progress, sustained commitment from utilities, policymakers, and stakeholders is necessary to ensure the reliability and resilience of the country’s energy infrastructure in the future.

Click here to access the full report.