Chevrette is commenting on his company's sixth installment of Strategic Directions in the U.S. Electric Utility Industry Report. Based on an industry survey of electric utility participants earlier this year, B&V says key findings from this year's report indicate:

·         Regulation (economic and environmental) will remain the primary motivator for utility leaders concerning investment decisions

·         Electric customers will be the ones who pay for changes through increased rates (65% of those surveyed said customer rates had increased in the past year and more than half expect rates will rise "significantly" due to environmental compliance programs

·         Regulator and customer understanding of potential  smart grid benefits lag behind the pace at which the new technology is being deployed

·         The nexus of water and energy continues to be a major issue for the industry

·         Utility leaders are starting to “see gold” in green programs -- the industry’s view on renewable energy is shifting from one of doubt to one of opportunity

·         The industry’s view on coal is rapidly changing

Added Chevette: “The combination of a persistently sluggish economy, growing environmental concerns and uncertain regulatory outcomes, is creating the greatest earnings pressures in recent memory. Moving forward, utility leaders must balance the competing needs of sound financial performance and increased regulatory requirements while striving to exceed customer expectations.”

You can access the full report here.

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