2019 Executive Energy Leaders Team Project

The Customer-facing Utility

Executive Energy Leaders teams will study the rapid evolution of “behind the meter” technologies now offered to residential, commercial and industry customers and how the utility may continue to be the key power and power service provider. Teams will meet or have conference calls between sessions and have “team project time” during sessions to work on their assigned policy area. Teams will present their solutions at year end to a panel of energy industry chief executive officers.

Globally and in the United States the utility business model is undergoing rapid transformation. For decades the demand for power has expanded and utilities, whether they be investor-owned, cooperatives, power authorities or municipals, have been the entities responsible collectively for the generation, transmission and distribution of electric power. In 2016 the US Department of Energy’s Energy Information Administration reported that for the first time since the beginning of U.S. power production, U.S. Gross Domestic Product growth and power consumption had “uncoupled”. It was also about that time that energy efficiency, energy management and energy production technology enable customers to reduce their energy consumption or produce energy for their own use or resale back to the utility, thus reducing utility sales.

During upcoming meetings we will examine certain topics which will help the teams develop their conclusion but teams should proceed with independent research to achieve their objective. Topics of upcoming meetings will be:

  • April – The utility business model transformation/Utility rate structure: how utilities “make money”
  • June – Companies, products and services influencing power demand.
  • August – Regulation influencing “behind the meter” energy management and production.

 Team Organization

Two teams will be organized; each of which will in parallel study this issue.

Team Red Team White Team Blue
Team Member 1 Team Member 1 Team Member 1
Team Member 2 Team Member 2 Team Member 2
Team Member 3 Team Member 3 Team Member 3

Each team will determine how it will be organized and governed, with what frequency it shall meet and any division of labor.

Assignment

Each team will over the course of 2018 will:

  • understand the various influences causing the utility business model transformation;
  • Understand how utility rates are structured and how utilities “make money”;
  • understand the relative importance of this trend nationally/globally;
  • assess whether this trend involves a “zero sum game” and there will be winners and losers;
  • determine which types of companies will succeed as “inventors” and which as “re-inventors”; and
  • document its conclusion with regard to: the utility business model transformation, how long it will the transformation proceed, how utilities will conduct business in the future and the type of companies which will perform certain utility functions in the future.

Plan drafts should be complete by the fifth Carolina Executive Energy Leaders meeting. Plans will be presented to a panel of Chief Executive Officers and policy officials during the sixth meeting.