In some parts of the US utilities have gotten the messages and are doing exactly that. These utilities are likely to become the stronger companies able to swallow up the ineficient companies (isn't that how a free market works?)

Utilities should not branch out of the core area of energy related items (generation, renewables, delivery, operations, distribution, etc). In the 80's and 90's we saw some power utility companies jumping on the internet bandwagon, divesting their generating capabilities --- and we saw those same companies implode going bankrupt. (Montana Power, Enron) to name a few.

Many of the utilities started out as neighborhood entities and have grown larger - but their roots still should be in their local community and states, doing the business that they've known for nearly 100 years. Just bring the technology along, and embrace the new options with energy efficiencies, renewables, demand reduction -- become a partner -- not an observer.