Electric utilities

The U.S. power grid is the largest and most complex machine ever built. It’s also aging and under increasing stress from climate-driven disasters such as wildfires, hurricanes and heat waves. Over the past decade, power grids have played roles in wildfires in multiple states, including California, Hawaii, Oregon and Minnesota. When wind speeds are high and humidity is low, electrical infrastructure such as aboveground power lines can blow into vegetation or spark against other components, starting a fire that high winds then spread. Under extreme conditions, utilities may opt to shut off power to parts of the grid in their service areas to reduce wildfire risk. These outages, known as public safety power shutoffs, have occurred mainly in California, where wildfires have become larger and more destructive in recent decades. On April 5-6, 2024, Colorado utility Xcel Energy carried out that state’s first public safety power shutoff, cutting power to thousands of custo...

Small-scale solar power, also known as rooftop or distributed solar, has grown considerably in the U.S. over the past decade. It provides electricity without emitting air pollutants or climate-warming greenhouse gases, and it meets local energy demand without requiring costly investments in transmission and distribution systems. However, its expansion is making it harder for electric utilities and power grid managers to design fair and efficient retail electricity rates – the prices that households pay. Under traditional electricity pricing, customers pay one charge per kilowatt-hour of electricity consumption that covers both the energy they use and the fixed costs of maintaining the grid. As more people adopt rooftop solar, they buy less energy from the grid. Fewer customers are left to shoulder utilities’ fixed costs, potentially making power more expensive for everyone. This trend can drive more customers to leave the system and raise prices further – a...

Frustration with electric utilities is universal today. Whether it’s concerns over high rates, poor service or a combination of both, people are constantly looking for a better answer to the systems that serve them. In the Nov. 7, 2023, election, voters in Maine had a chance to consider a new model for electricity service that would replace the state’s two widely unpopular private utilities, but they balked in the face of multibillion-dollar cost projections. This decision took the form of two ballot questions. Question 3 asked whether voters wanted to create a new publicly owned power company, dubbed Pine Tree Power, to take over the existing assets of Maine’s two privately owned utilities. The related Question 1 asked whether consumer-owned electric utilities should have to get public approval before taking on more than US$1 billion in debt. Voters adopted Question 1 and soundly defeated Question 3. Municipal ownership of utilities is not new: Across the U....

After nearly two decades of stagnation, U.S. electricity demand is surging, driven by growing numbers of electric cars, data centers and air conditioners in a warming climate. But traditional power plants that generate electricity from coal, natural gas or nuclear energy are retiring faster than new ones are being built in this country. Most new supply is coming from wind and solar farms, whose output varies with the weather. That’s left power companies seeking new ways to balance supply and demand. One option they’re turning to is virtual power plants. These aren’t massive facilities generating electricity at a single site. Rather, they are aggregations of electricity producers, consumers and storers – collectively known as distributed energy resources – that grid managers can call on as needed. Some of these sources, such as batteries, may deliver stored electric power. Others may be big electricity consumers, such as factories, whose owners ha...

Maui County is suing Hawaiian Electric, claiming the utility was negligent for not shutting off power as strong winds hit the island in the hours before the city of Lahaina burned. While the cause of the devastating Aug. 8, 2023, wildfire is still under investigation, forecasters had warned that powerful winds were expected, and West Maui had exceptionally dry conditions that put it at high risk for wildfires. In many cases, however, deciding to shut off power isn’t as simple is as it might sound. We asked Tim Lieuwen, executive director of the Strategic Energy Institute at Georgia Tech, about the risks and trade-offs utilities have to weigh in deciding how to respond during fire-risk conditions. Why are utilities so often suspected in fires? There are a lot of ways that utility lines, particularly high-voltage lines, can spark fires. If tree branches are too close to the lines, electricity can arc between the line and the tree. Old equipment can set off sparks. If the w...