As electricity consumers demand more convenience and flexibility, utilities, regulators, and customers themselves will have to decide which investments to make—and who should pay for them.
Stakeholders in the electricity-utility industry face challenges that have been building for years. As electricity supply and demand evolve, they must rethink the fundamentals of cost allocation, customer value, and rate design.
The decisions they make will have major implications for investments in the grid and utility operations for years to come. They will also have a huge impact on relationships between providers and millions of customers who want more choice, convenience, and control.
Here, we examine the factors driving disruption and issues utility executives should address now. We close with questions that those executives will need to answer for their full set of stakeholders. . . .
