Issue Area

Utilities and the Grid

Overview

Utility policy is fundamental to addressing climate change and energy affordability, with today’s policies shaping costs and emissions for decades to come. Currently, outdated utility regulations are keeping fossil fuels online and energy costs high. State legislatures implement the regulatory and policy frameworks under which state utility commissions operate, giving legislators significant power in shaping how utilities operate. Lawmakers are increasingly addressing these issues by (1) updating laws governing how utilities are regulated, (2) improving utility oversight, (3) directing and reforming utility commissions, and (4) reshaping ratemaking processes to support affordability and clean energy. 

NCEL Point of Contact
Emily Odgers

Grid Specialist

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Key Facts

There are three main types of utility ownership models: Investor-Owned Utilities, Publicly-Owned or Municipal Utilities, and Rural Electric Co-Ops.

U.S. electricity generation reached a record 4.43 trillion kWh in 2025 – roughly five times what the country produced in 1950. This marks a clear break from the relatively flat demand seen between the mid-2000s and early 2020s.

Estimates suggest electric utilities collected $244 billion in profits from household bills between 2021 and 2025 – about 13% of total consumer electricity spending over that period.

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Resources

NCEL Resources

Online Resources

RTO Backgrounders | Sustainable FERC Project

Explains regional transmission organizations’ structure, governance, and role in managing wholesale electricity markets.

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What is Grid Modernization | Conservation Law Foundation

Overview of grid modernization concepts and policies, outlining key technologies, regulatory approaches, and system upgrades shaping the evolving electric grid.

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Utilities for dummies | Grist

Guide to how electric utilities operate, including their structure, regulation, and role in delivering electricity to customers.

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Paying for Their Profits: How Ratepayers Foot the Bill for Soaring Utility Profits | Energy & Policy Institute

Explains utility rate structures and regulatory policies, and examines how costs and profits are allocated to customers through state oversight.

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Building a Brighter Future by Changing Utility Incentives | RMI

Overview of policy approaches to utility regulation, highlighting strategies to align utility incentives with clean energy, efficiency, and customer outcomes.

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