Selection of wood pole alternatives by means of present-worth analysis

In evaluating alternatives in the design of transmission facilities, first cost alone is not always the true cost of the project. Using the present-worth method to determine the cost of the project over the life of the facilities represents the total cost of constructing and maintaining the facilities. Present-worth analysis was also used in determing whether it was more economical to completely rebuild the line or to continue maintenance on the existing line. In this example the analysis showed that a completely new line using larger conductor and steel poles was a more economical design over the estimated 50-year life of the line.