Profit and the New Normal
Delivering value in a zero-growth market.
Disruptive technologies and resource shifts are changing the utility business model. Market factors are driving companies toward four possible paths.
Delivering value in a zero-growth market.
Disruptive technologies and resource shifts are changing the utility business model. Market factors are driving companies toward four possible paths.
Refining the business case for advanced distribution investments.
As utilities plan their capital budgets for the next few years, investments in advanced distribution systems face an uncertain future. Customers question the value—and propriety—of some programs, while long-term strategic goals depend on seamless integration. What will be the path forward for smart grid technology?
(December2012) KC Electric Association expects soon to finalize installing a Sensus FlexNet network and iCon A electric meters to serve about 4,000 residential and small commercial members across a 5,000-square-mile territory in rural Colorado. Itron and C3 Energy formed an alliance to integrate and jointly market an energy management solution to North American utilities. And others...
Positioning to win in the contest for scale.
The industry’s slow-and-steady pace of mergers seems to be picking up speed, as larger and well-positioned players overtake smaller and weaker targets. Realizing the greatest value from consolidation requires companies to assess their strengths and weaknesses and focus on performance improvement—both before and after a deal gets done.
A challenging year brings a change in the rankings.
Balancing operational cost and consumer value creation.
Regulatory mandates and smart grid technologies are creating an opportunity for utilities to adopt a new approach to customer service—an approach that balances a range of strategic and operational imperatives, toward the promise of higher customer satisfaction, greater efficiency, and enhanced revenue.
Consumer preferences for interaction have reached a tipping point and energy providers now have a compelling opportunity to fundamentally re-design the traditional interaction mix. The cornerstone of the redesigned interaction mix is developing a dual customer relationship. Successful providers will be those that drive low-value transactions to lower-cost channels while creating capacity to focus on delivering value-added service for a small set of interactions.
Distribution management at the smart grid frontier.
The hype over smart grid has become focused on the idea of “advanced distribution management systems” (ADMS). But so far, few utilities have implemented ADMS beyond pilots and incremental tests. Fortnightly analyzes the technology trends and profiles examples of true ADMS in action.
Customers won’t join the team unless utilities make it worthwhile.
Are utilities ready to really engage customers, and get them to care about more than just whether the beer stays cold? Or will we turn our focus away from customers, because we don’t know how to engage them — or how to convert engagement into value?