site logo

Utility Business Model Reform

Note from the editor

Utilities, regulators and advocates around the country are exploring new business models from updated rate structures to performance-based regulation.

A number of factors are spurring these changes, including the rise of distributed energy resources and a desire among states to align customer and provider needs while attaining certain policy objectives.

The following trendline examines these and other developments as the power sector undergoes a fundamental transition in how it operates and profits.

Larry Pearl Senior Editor

2020 Outlook: New state action on customer empowering rate designs and business models

Regulators, utilities and stakeholders will pilot simple price signals and work toward agreement on a performance-based framework, but California may be in for a surprise.

Outdated business models are holding back greater renewables, DER integration: Enter DSOs

Performance-based regulation: Seeking the new utility business model

As the push to upend traditional utility business models grows across the country, new leading efforts are showing results where others missed the mark.

Harvesting hybrid solutions from performance-based rates: 'Not all or nothing'

While performance incentives can't "bribe a utility into being something fundamentally different," they can fundamentally reduce the friction of transition.

Green Mountain Power's pioneering steps in transactive energy raise big questions about DER's value

The Vermont utility's program will show what distributed energy resources are worth in customer-to-customer transactions

3 state commissions upending the way utilities do business

Oregon, Illinois and Hawaii regulators are disrupting the traditional utility cost-of-service model to incentivize bringing more distributed energy resources online.

What will electricity pricing look like in 2040?

​Experts weigh in on their rate design predictions: Is the future complex rates and set-it, forget-it technologies or Netflix-like subscription plans?

How much — and how fast — will Colorado change its utility business model?

Green hydrogen gets real as utility business models and delivery solutions emerge

The fuel may be the only way to meet power system needs in zero emissions scenarios and the market signals to produce and use it are finally clear.

Utilities can profit from a DER-heavy future by transitioning from traditional business models: report