In addition, uncertainty about future security of supply due to geopolitical conflicts and tensions can push energy prices up or down, with single events in an unstable world often having a noticeable and immediate impact on prices. While federal regulators are exploring ways to accelerate grid connections for large loads, states, utilities, and communities are pushing back over cost impacts and jurisdictional authority, prompting tools such as specialized large-load tariffs. At Mind Energy, we understand how each company can best capitalise on current and future price volatility to make it a unique strategic advantage rather than a source of uncertainty. A strong risk and portfolio management is essential for navigating energy market volatility, enabling your organisation to not only withstand major price swings, but to turn them into strategic opportunities, and in some cases, additional revenue. PPAs (Power Purchase Agreements) can also provide long-term, stable prices for renewable energy while supporting both your company’s own transition and the broader shift towards sustainable energy.
Utilities We believe the pause and reassessment makes sense given the tremendous amounts of capital that the hyperscalers are investing and the potential for winners and losers in the AI space and data-center market. The examples cited herein are based on public information and we make no representations regarding their accuracy or usefulness as precedent. We believe that the combination of strong utility fundamentals, and the potential for accelerated electric demand bode well for the relative performance of utilities. In addition, accelerated electric demand provides support for EPS CAGR and the potential for even higher growth. Consolidation is driven by higher capital investment budgets and economies of scale, as accelerated energy demand and decarbonization create double-digit rate base growth and require significant debt and equity issuance.
U.S. electricity demand appears increasingly likely to inflect higher from 2026–2032, led by AI-intensive data centers and supported by diversified end-market demand. Most companies in the regulated utility universe generated positive total returns, with a median return of 15%. By Adityaveer Raswan, Staff Software Engineer, Autonomy, Agtonomy –Over the past nine years, I’ve built motion planning systems across three autonomous domains.
The Damage Prevention Challenge: Billions Lost to Waste & Inefficiency
Discover how EY insights and services are helping to reframe the future of your industry. Stay connected with ConstructConnect News for construction industry news and construction market analysis to stay ahead of what’s building next. These technologies unlock additional capacity, improve efficiency, and enhance reliability, all while leveraging existing infrastructure. Dynamic Line Rating lets electric companies adjust how much power lines can safely carry based on real‑time weather conditions, helping https://www.yaldex.com/java_tutorial_2/Fly0157.html them prevent overloads and use existing lines more efficiently.
- Utility stocks are not bond proxies, and share prices are a function of earnings and dividend growth rates, but higher (lower) rates negatively (positively) impact stocks, given that future cash flows are impacted by the discount rate.
- Mind Energy Securities can also help to calculate the long-term value of building your own solar parks or wind turbines.
- Utilities We believe the pause and reassessment makes sense given the tremendous amounts of capital that the hyperscalers are investing and the potential for winners and losers in the AI space and data-center market.
- Discover how EY insights and services are helping to reframe the future of your industry.
- The Research Analysts’ views are subject to change at any time based on market and other conditions.
- In June 2025, Micron announced a second large fab facility equal to the size of the first.
- Consulting the experts on the management, risk profile and optimisation of the cost of electricity consumption, making it a strategic asset that can drive the green transition, is now just as natural as consulting a pension or bank advisor on how to manage savings or investments.
- The biggest potential threat is being able to access the workforce and technology to get the job done.
- Policy support—including NRC permitting streamlining, domestic fuel supply measures, and international partnerships—is provides confidence and backing the future of nuclear for long-term capacity growth.
- In December 2025, GE Vernova, a major manufacturer of power generation equipment, expects to secure contracts for 80 gigawatts of combined-cycle gas turbines by the end of 2025 compared to 14 GW in 2024.
- Ultimately, a broad portfolio of generation sources will be necessary to support these existing and future power needs.
The EIA’s December 2025 Short-Term Energy Outlook indicates that U.S. electricity demand will continue to rise to record levels in 2025 and 2026, driven by data centers, electrification trends, and commercial and industrial growth. Investment spans all major areas of the system, including distribution (33%), generation (24%), transmission (20%), gas-related infrastructure (14%), and other categories (8%). Transmission rate base for 79 U.S. electric utilities rose 7.6% to $185.14 billion in 2024 up from $172.02 billion in 2023, rebounding after two years of slower growth. Beyond 2025, http://romj.org/2025-0302 company guidance implies a 7% nominal (5% real) capex CAGR through 2029, though these estimates will likely rise as investment plans are finalized and regulatory approvals obtained. Capital spending for a peer group of 44 North American electric utilities increased 15% nominally in the first three quarters of 2025 compared with the same period in 2024.
As utilities race to add capacity and improve reliability for energy-intensive users like data centers, firms that understand these technologies and deliver grid-ready solutions may find, bid, and win suitable projects in power infrastructure spending. The U.S. electric grid, originally designed for one-way power flow from centralized plants to consumers, is struggling to keep pace with modern energy needs. GETs and other innovative upgrades are emerging as cost-effective solutions to address these challenges and meet future energy demands. As electricity demand and infrastructure soar, U.S. utilities are turning to grid-enhancing technologies (GETs) to modernize the nation’s aging power grid.
Harnessing Technology for a Sustainable Future in Public Utilities
“The portfolio manager carefully monitors and assesses the market and, taking into account the agreed risk profile, decides when it is wise to lock in the price, i.e. hedging, and when it is better to buy and sell at the current market price. This way, the company gets lower average prices and reduces its overall costs over a longer period of time,” “We are very conscious about incentivising each portfolio manager to maximise value created for the client – without necessarily increasing risk for the client. This can be direct economic value and security of supply through cheaper and stable power, or the promotion of strategic sustainability goals.” Portfolio Management – Index is a smart solution for energy-intensive businesses facing unpredictable spot prices. Most people are familiar with the concept of portfolio management from the financial sector, where it involves managing shares, bonds, currencies or other types of investments according to individually agreed guidelines.
Surging Energy Demand and Grid Modernization
“It’s the challenge of the federal funds impacting the market, he says. A white paper published in April 2023 by the Infrastructure Protection Coalition (IPC) stands as a “call to action.” It is designed for state and federal legislators and government agencies to address failures in the nation’s damage prevention system used to protect the public and prevent damage to underground utility lines. The information in this report represent the opinions of the individual Research Analysts’ as of the date hereof and is not intended to be a forecast of future events, a guarantee of future results, or investments advice. The Research Analysts’ views are subject to change at any time based on market and other conditions. Treasury yields are highly correlated and will likely remain so in the future, utility dividends have risen over time (most on annual basis) while the Treasury yield remains fixed.
These assets provide scarce, carbon-free generation as electricity demand and corporate procurement accelerate. Policy support—including NRC permitting streamlining, domestic fuel supply measures, and international partnerships—is provides confidence and backing the future of nuclear for long-term capacity growth. While new large-scale reactors are unlikely before 2035, momentum is building through restarts, life extensions, and small modular reactors (SMRs). Notable large scale gas projects include Homer City (4.5 GW) and Bruce Mansfield (3.0 GW), both converting retired coal plants to gas to serve hyperscale campuses.
According to BaseRock Partners Utility Services Market Report 2025, major outlays are expected across transmission and distribution networks, water systems, and broadband infrastructure. After two decades of flat electricity demand, utility construction work has come back fast. The biggest potential threat is being able to access the workforce and technology to get the job done. In summary, the mid-year outlook for utility infrastructure spending remains very positive for electric power, water and wastewater, communications, and even natural gas. The two points on which both sides generally agree are not wanting to get beat by China and making sure the U.S. remains competitive. “There’s a new industrialization movement inside of the U.S. that is emphasizing our infrastructure, the things that impact our ability to compete with the world,” he says.
In December 2025, GE Vernova, a major manufacturer of power generation equipment, expects to secure contracts for 80 gigawatts of combined-cycle gas turbines by the end of 2025 compared to 14 GW in 2024. Wind development is more uncertain given permitting challenges and regulatory headwinds, particularly on federal lands. On December 30, 2025, the ID PUC approved a constructive rate plan based on a 9.6% allowed ROE. In June 2025, Micron announced a second large fab facility equal to the size of the first.