Utility Dive releases annual survey report

Unpredictability has become the new normal for the power industry as Utility Dive’s fifth annual State of the Electric Utility Survey You are leaving WAPA.gov. makes clear.

Artwork by Utility Dive

The survey of nearly 700 electric utilities in the U.S. and Canada indicated that their commitment to lower-carbon energy resources remains strong even as concern over market and policy uncertainty grows. Other top takeaways include:

  • Expectations of load growth – Since 2008, utilities have faced stagnant or declining demand for electricity, but this year, utility professionals see that trend changing.
  • Uncertainty, particularly in regard to federal regulation – Nearly 40 percent of utility professionals named uncertainty as their top concern about changing their power mix — almost twice the level of concern expressed about integrating distributed energy resources (DER) with utility systems.
  • Cybersecurity fears – For the second year running, participants placed cybersecurity at the top of their list of concerns, with about 81 percent rating it either important or very important.
  • Justifying emerging grid investments – Utilities see the need to invest in grid intelligence to manage electric vehicle (EV) charging infrastructure, DER, storage, analytics and cybersecurity. However, demonstrating the return on such high-tech investments to regulators, ratepayers and even their own organizations is complicated.
  • Traditional cost-of-service regulation falling from favor – Utilities are ready to adapt their business models to take advantage of new technologies and market opportu­nities. Around 80 percent indicated they either have or want a regulatory proceeding in their state focused on reforming utility business and revenue models.

Perhaps the most positive message to be taken from the results of the 2018 survey is how many utilities are willing to rethink the traditional business model in the face of changes in the industry. The report has a laundry list of other important insights on rate design, DER ownership, the increasing popularity of EVs and more. Whether you participated in the survey this year or not, it is sure to make for interesting reading.

You can download the 86-page survey report for free, or read a rundown of the top results with graphs. Utility Dive also hosted a sneak-peak webinar on the results at the end of January, which you can listen to for free.

Source: Utility Dive, 2/27/18

Utility industry survey identifies top concerns in 2017

The results are in from Utility Dive’s State of the Electric Utility Survey 2017
and the report is available to download. You are leaving WAPA.gov.

The top five issues utilities identified as their biggest challenges will no doubt sound familiar to WAPA customers, whether or not they participated in the survey:

  • Physical and cyber security
  • Distributed energy policy
  • Rate design reform
  • Aging grid infrastructure
  • Reliable integration of renewables and distributed energy resources (DERs)
72 percent of utility professionals said physical and cyber security is either "important" or "very important," making it the most pressing issue for the sector in 2017.

72 percent of utility professionals said physical and cyber security is either “important” or “very important,” making it the most pressing issue for the sector in 2017.

The results of the survey, disclosed in late March, found that 72 percent of respondents see physical and cyber security as either “important” or “very important” today, making it the industry’s most pressing issue in 2017. A total of 65 percent considered distributed resource policy either important or very important. Rate design reform ranked as important for 31 percent and very important for 32 percent of respondents. As for aging grid infrastructure, 34 percent of survey respondents see it as important today, while another 28 percent say it is very important. The reliable integration of renewables and DERs finished in the top five with 60 percent identifying it as an important or very important concern.

State regulatory model reform, the aging utility workforce, changing consumer preferences, compliance with state power mandates and stagnant load growth rounded out the top ten issue responses.

Two years ago, physical and cyber security ranked as sixth, behind aging infrastructure, aging workforce, current regulatory models, stagnant load growth and federal emissions standards.

More than 600 electric utility employees from the U.S. and Canada took online questionnaire, offered to Utility Dive readers in January. Investor-owned utilities represented 54 percent of the survey respondents, followed by municipal or public power utilities (32 percent) and electric cooperatives (14 percent).

Among other key takeaways in the 2017 report, the survey found that utilities are most confident in the growth of utility-scale solar, distributed energy resources, wind energy and natural gas generation over the next 10 years. They also expect coal generation to decline significantly, while nuclear generation will stagnate or retire, depending on the region. Utilities consider uncertainty over future energy policies and market conditions to be the most significant challenge associated with the changing power mix, according to the survey.

Region played a role in how utilities viewed challenges. The majority of respondents across the country identified physical and cyber security, DER policy and renewable energy and DER integration as serious issues. However, that concern was markedly stronger in the West Coast, Great Plains, Rocky Mountain and New England regions. Utility Dive noted that those regions feature states with both robust DER growth and utility reform dockets to reshape power sector business models for DER deployment.

Rate design reform and aging infrastructure were of greater concern on the West Coast, while utilities in the Southwest and South Central states were the least worried about those issues.

You can download the report for free and see how your responses stack up to those of your colleagues. Then, share your thoughts on these issues with Energy Services, let us know how you are handling them and how you would like us to help you address them.

Source: Public Power Daily, You are leaving WAPA.gov. 4/10/17

New tool from DOE helps utilities evaulate cybersecurity

Cybersecurity is an issue that is on everyone’s mind today, so utilities and grid operators may be interested in a new software program that enables them to assess their cybersecurity capabilities. The Electricity Subsector Cybersecurity Capability Maturity Model (ES-C2M2) includes a cybersecurity self-evaluation survey tool, which looks at situational awareness, along with threat and vulnerability management, to allow a utility an internal option for the cybersecurity discussion. Utilities can also use ES-C2M2’s series of gradual assessments in platform areas to build a complete picture for prioritizing future cybersecurity actions and investments.

The Energy Department (DOE) developed the model in a public/private partnership formed in 2011, and launched the first version in May 2012. The White House approached DOE with a challenge to develop capabilities to manage dynamic threats and understand grid cybersecurity. The objectives for the model development included the desire to strengthen cybersecurity capabilities, along with the need to enable consistent evaluation and benchmarking, share knowledge and benefits and help prioritize actions and investments.

More than 77 utilities—cooperatives, international, investor-owned utilities, public power and regional transmission organizations—have downloaded ES-C2M2’s assessment tool. The DOE went on-site with 17 industry volunteers to walk through the model, using feedback from them to make changes in the next version. Comments have led to additional maturity indicator levels, performance metrics and measurement and informative materials.

DOE developed the model specifically for the electricity industry with Department of Homeland Security (DHS), Carnegie Mellon University and industry stakeholders. Utilities can download ES-C2M2 or contact DOE for more information. If you decide to explore this tool to improve your cybersecurity, don’t forget to share what you learn with Energy Services. Source: energybiz, 3/20/13