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Relationship between Utility Tunnel Admission Fee and Power Grid Company Economic Benefit based on Life Cycle Costs Management

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DOI: 10.25236/seiem.2020.049


Shiyuan Lin, Qing Shi, Jing Yu, Lifang Zou

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Shiyuan Lin


In order to take advantage of urban underground space, the government introduced so many policies to encourage utility tunnel development. However, compensated use also increased the operating expenses of the Power Grid Company. Based on the principle of “safety, reliability and economy”, this paper took business cost, electricity income, government subsidies and other related factors into account and assessed the impacts of different admission fees in 3 kinds of situations to Power Grid Company. Meanwhile providing constructive suggestions in payment method and government share by evaluating the Power Grid Company economic benefit from IRR, NPV and payback-period.


Utility tunnel, admission fee, life cycle costs, economic benefit, payment method, government share