The American Utility in 2022: Threats and Opportunities Abound

Deck: 

Guidehouse

Fortnightly Magazine - July 2022
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Extreme weather events, aging infrastructure, and liability risks. Grid and load disruption caused by accelerating distributed energy resource (DER) penetration. A shifting generation mix. Vocal consumers increasingly demanding action on climate change and social equity. Cybersecurity concerns.

These are just a few of the challenges utilities face today. Taken together, the drivers behind the ongoing energy transition are like a snowball rolling downhill: the farther it goes, the larger it becomes, and the faster it travels, the greater its impact at the bottom of the hill. For utility leaders facing that threat, the outlook can be daunting.

Each year, Guidehouse and Public Utilities Fortnightly survey utility executives across the U.S. to understand key industry trends and top-of-mind concerns. In 2022, participants noted many of the same opinions as in prior years — rising DER penetration and cybersecurity represent major threats — while also acknowledging that regulatory restrictions and conservative utility culture inhibit progress.

But there is at least one key difference in 2022. Thanks to the Infrastructure Investment and Jobs Act (IIJA), passed in November 2021, utilities have a unique opportunity to make strategic upgrades and investments to address not only concerns around grid resiliency and cybersecurity, but growing social equity concerns and competitive threats on multiple fronts as well.

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