Utilities' Guide to Operational Efficiency

The implication, here, is twofold. For one, individual utilities are leaving significant cost savings on the table, as much as a 25 percent reduction in operational costs. But also, the industry as a whole is compromising its negotiating power during rate-setting discussions with regulators.

That’s not all. As impacts from extreme weather events continue to intensify, utilities risk increased liability if they fail to make the necessary operational changes. For example, power utilities in the United States, Australia, and Europe are experiencing unprecedented scrutiny in light of recent infrastructure-related wildfire disasters in customer service areas disproportionately exposed to the wildland- urban interface.