Brattle’s Retail Energy Practice has developed a briefing series analyzing potential utility responses to challenges and trends associated with the “Utility of the Future” (UoF). A new UoF paradigm is emerging as utilities rethink their future business models in response to the expansion of distributed energy resources, decarbonization goals, declining sales growth, and technological developments. While each of these developments has the potential to disrupt the status quo, they could also provide growth opportunities to utilities and new market entrants. Our briefing series attempts to examine the UoF from an integrated perspective by examining linkages between the financial, technological, strategic, and regulatory dimensions.
This brief provides our view of how utilities and regulators should prepare for the transition to the Utility of the Future (UoF) and offers some steps and planning initiatives that utilities should undertake in order to proactively shape their path to the UoF.
Brattle’s Retail Energy team has extensive experience developing benefit-cost analyses for next generation investments in smart grid, system reliability and resilience, and overall grid modernization, as well as for investments at the distribution system edge, such as electrification opportunities. We have also worked extensively on assessing business and financial models applicable to the evolving electricity market ecosystem, and are at the forefront of marginal cost and benefit analyses that are becoming increasingly important in determining efficient and equitable pricing constructs and incentives for DER compensation. Our expertise is grounded in foundational principles of economics and finance, in order to better align load forecasting, rate design, and risk management with industry trends and developments.
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