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.
The future is here and resistance is futile. Public power utilities of all sizes are facing a new world shaped by technology, customer preferences and changing policies. These changes are most evident in five key areas:
The American Public Power Association wants to help power providers navigate these changes and explore the opportunities this new environment presents. Beginning Aug. 15, a five-part webinar series looks at new initiatives through the experiences of the utilities that implemented them.
APPA recommends this series for general managers, CEOs, senior utility executives, governing boards, policymakers, utility managers, future leaders in policy and strategy and public communications professionals.
Comprehensive agendas You can sign up for webinars individually or register for the full series at a discounted rate. Participants will also get access to recordings and slides of the webinars for future reference or if they miss one. All webinars are scheduled for 12-1:30 p.m. Mountain Time.
Aug. 15 – The Future of Rate Design: Distributed generation and energy-efficiency programs are creating cost-shifting concerns. Catch up on the latest industry rate trends and discover how to move toward stable rate structures that accurately recover costs from all customers. Review the pros and cons of different rate models—time of use, higher customer charge, demand charges and bi-directional billing. Learn how other utilities like yours have created long-term rate plans, selected and implemented new rate designs, and obtained buy-in from board and city council members as well as customers.
Sept. 7 – Community Solar Success Stories: Community solar is becoming an increasingly popular option for utilities that want to increase solar in their generation portfolios and offer this option to customers who cannot install rooftop solar. An industry expert will share experiences, insights and predictions for the future of community solar. Your utility colleagues who’ve launched community solar programs across the country will explain how they made decisions in key areas like program structure, implementation, financing, customer outreach, rates and marketing. They’ll discuss challenges and the secrets to success so you don’t have to reinvent the wheel.
Sept. 26 – Charging Ahead with Electric Vehicles: The price of electric cars is falling, and more fast-charging stations are being installed. The Brattle Group predicts that a steady conversion of vehicles and heating to electricity could possibly lead to a 105-percent increase in electricity demand by 2050. If these new loads start to proliferate in your community, are you ready to support them? Now is the time to plan for EV infrastructure and to make important cost-benefit decisions. Learn about new developments and advances in EVs and how they are impacting the utility industry. Hear about innovative public power EV programs and get insights regarding how to work with customers to spur investment in EVs, develop fair pricing models and plan for potential load growth.
Oct. 12 – Best Practices in Battery Storage: The evolution of energy storage is changing how we produce and consume energy like never before. Technological advances, reduced costs and mandates from regulators have positioned energy storage for unprecedented growth. Get up to speed on where we are and what to expect in the future. Three public power utilities will talk about their award-winning storage projects and the realities of implementation, from selecting a developer and siting to leveraging benefits such as peak shaving and financial impacts. Your pioneering colleagues will help you navigate the bold new path of utility-scale battery storage.
Oct. 26 – Smart Meters for Smart Solutions: Learn from utilities that have installed advanced metering infrastructure (AMI). Gear up for the real-world challenges and understand how other utilities like yours are using AMI and integrating with other technologies. Understand how to fully leverage the benefits of smart meters — to predict load and usage, implement time-of-use rates, respond better to outages, assess the need for system upgrades and offset peak demand charges. Gather best practices on transitioning rate structures, educating customers and soliciting feedback.
Registration information You can sign up for the entire series or register for each webinar individually. Individual webinars cost $99 for APPA members and $199 for nonmembers. Register for all five webinars for $395 for APPA members or $795 for nonmembers, a discount equivalent to one webinar.
Source: American Public Power Association, 7/10/17