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As a result, either regulatory institutions will have to change materially from those of the 1980s or material disincentives to new utility investment will persist indefinitely.
In earlier years public utility investment (including investment in transportation) was more important than manufacturing investment, but in the course of growth this relationship was reversed.
The disparity in adoption of tools like battery storage means that ratepayers in some places get a fuller consideration of alternatives for utility investment.
According to Morningstar, PG&E is not your "typical utility investment," as it pays no dividends, and is going to be highly speculative when it comes to equity value.
Similar(56)
Mr. Buffett told shareholders Berkshire's future utility investments "could be large".
First, the White House move does not change the fundamental rationale behind most utility investments.
The ability of forecasting energy prices, for instance the electricity prices, would be highly appreciated in order to improve the profitability of utility investments.
This may seem like a long ways off, but given the nature of utility investments, it's generally recognized that utilities would have to begin making investments in compliance within the next year or so in order to meet the targets (which is one argument that industry and the challenging states stressed in their stay applications with the Court).
Key policy recommendations: expanded utility investments, at least up to the wiring of new charging stations; reform of commercial electricity rates to encourage more optimal charging times and locations based on grid needs; and expedited permitting and energy data access for charging stations in the most strategic locations to boost EV adoption.
But the path to bridging the EV infrastructure gap runs through public utility commissions (PUC) overseeing utility investments and planning.
The ASCE predicted that $1.5 trillion to $2 trillion in electric utility investments will be needed by 2030.
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