- link Copy Url
- [  Share on twitter ](https://twitter.com/intent/tweet?text=Changing Times for Electric Utilities https://www.3blmedia.com/markdownify/node/44610?absolute=1&via=3blnews "link to 3 B L Media's Twitter")
- [  Share on linkedin ](https://www.linkedin.com/shareArticle?mini=true&url=https://www.3blmedia.com/markdownify/node/44610?absolute=1 "link to 3 B L Media's Linkedin")
- [  Share on facebook ](https://www.facebook.com/sharer/sharer.php?u=https://www.3blmedia.com/markdownify/node/44610?absolute=1 "link to 3 B L Media's Facebook")
- [ email Share via email ](mailto:?subject=Changing Times for Electric Utilities&body=ESG News from Environmental Defense Fund https://www.3blmedia.com/markdownify/node/44610?absolute=1 "Share via email")
 
 

 # Changing Times for Electric Utilities

 

##### By John Finnigan

 

 

 Mar 6, 2014 2:35 PM ET

  Campaign:  [US Climate & Energy](/news/campaign/us-climate-energy)  

[Changing Times for Electric Utilities](http://blogs.edf.org/energyexchange/2014/03/06/changing-times-for-electric-utilities/)

  
Two seemingly unrelated announcements drew much attention in the electric utility industry recently. First, the Edison Electric Institute (EEI) (the trade group for the U.S. electric utility industry) and the National Resources Defense Council (NRDC) [jointly recommended](http://docs.nrdc.org/energy/files/ene_14021101a.pdf) changing how utilities should be regulated. Second, Duke Energy [announced](http://www.duke-energy.com/news/releases/2014021702.asp) it will sell 13 Midwest merchant power plants. These announcements are actually related because they both result from the same dramatic changes affecting the electric utility industry. As Bob Dylan aptly noted, “the times they are a-changin’.” Regulators and other stakeholders must be prepared to address these changes.

Under the traditional business model, electricity usage grew steadily. Utilities built ever-larger plants to serve this growing load. The bigger plants were more efficient than existing plants, so the unit cost for electricity steadily declined. Utilities benefited by steadily increasing their revenues. Customers benefited from declining unit costs. For utility customers, it was like paying a lower price per gallon of gasoline every time you filled your tank.

But this traditional model is crumbling, due to several factors: [Read More on the EDF Energy Exchange blog »](http://blogs.edf.org/energyexchange/2014/03/06/changing-times-for-electric-utilities/#more-6372)



 

 

 

 

 

 

 

   [![](/sites/default/files/Clients/EDFBusiness_logo_concepts_01.png)](/profiles/environmental-defense-fund)

 



 

### More from Environmental Defense Fund

###### [Ohio’s Clean Energy Standards Under Attack Again by ALEC](/news/ohios-clean-energy-standards-under-attack-again-alec)

 Apr 7, 2014 1:00 PM ET

  



###### [A New Study Points to the Need for Improved Air Monitoring in Texas ](/news/new-study-points-need-improved-air-monitoring-texas)

 Apr 4, 2014 12:50 PM ET

  



###### [Technology Innovators Challenged to Design Next-Generation Air Emission Monitors](/news/technology-innovators-challenged-design-next-generation-air-emission-monitors)

 Apr 3, 2014 9:00 AM ET

  



###### [LA Better Building Challenge Partners with EDF’s Investor Confidence Project to Accelerate Citywide Energy Efficiency Goals](/news/la-better-building-challenge-partners-edfs-investor-confidence-project-accelerate-citywide)

 Apr 2, 2014 3:25 PM ET

  



###### [Demand Response Is the Best Cure for Texas’ Ailing Grid](/news/demand-response-best-cure-texas-ailing-grid)

 Apr 1, 2014 5:50 PM ET

  



###### [Conference on Clean Energy Financing Signals a Shift in Funding the Low-Carbon Economy ](/news/conference-clean-energy-financing-signals-shift-funding-low-carbon-economy)

 Mar 31, 2014 12:25 PM ET

  



###### [GigaFactory Proves Tesla is Ahead of the Clean Energy Curve, But Does Texas Stand to Benefit?](/news/gigafactory-proves-tesla-ahead-clean-energy-curve-does-texas-stand-benefit)

 Mar 28, 2014 4:05 PM ET

  



###### [Transitioning to a Clean Energy Future Will Require Lots of Private Capital, but How Do We Get There?](/news/transitioning-clean-energy-future-will-require-lots-private-capital-how-do-we-get-there)

 Mar 25, 2014 6:25 PM ET