Abstract: Compared to copper power cable, purchase cost of aluminum power cable is much smaller, but technical performances are weaker in many aspects. In order to select between copper and aluminum power cable from long-term economic perspective, cable life cycle cost (LCC) model is established with consideration of time value of money. The model includes cost of purchase, installation, electricity loss, maintenance, failure loss and decommission. After calculation and comparison of LCC of two different cables, selection is made based on total LCC cost. Case study of cable line in Guangzhou urban area is performed. The results show that although purchase costs of aluminum cable are less than that of copper cable, the installation and operation costs of aluminum cable are much higher. Copper cable is better choice between two materials.