Opportunities for governors to align electricity markets with state energy goals

Electric utilities are facing a fundamental challenge to their long-term viability. New categories of business models are emerging to address challenges to utility profitability from rate-of-return regulation, adjustments to rate-of-return that reduce revenue loss, added profit opportunities, and transformative models. Governors can play an important role by convening stakeholders and encouraging thoughtful conversations and pilot programs to assess the options for managing the transitions underway in the electricity sector.