Siloed investment programs, each targeting a separate problem such as asset age, are no longer sufficient. Utility leaders must present a robust business case that examines potential solutions for electric grid challenges, outlines monetization of listed benefits and explains how to minimize cost to customers.
To achieve regulatory approval and realize potential benefits, utilities must provide a compelling case to stakeholders as to why modernizing the electric grid is needed. Over the past decade — driven by underestimated costs, unmet schedules and overestimated returns — regulators have increased scrutiny of grid investments. Simultaneously, they’re pressured to keep rates low to prevent major impacts to consumers’ wallets already under strain from rising economic costs.
To develop grid investment plans that will satisfy all, utilities must transition from siloed business cases and programs to a whole-system approach.