The Utility Landscape Forward Looking Thoughts KY Mineral Law - PowerPoint PPT Presentation

The Utility Landscape Forward Looking Thoughts KY Mineral Law Conference October 2016 John P. Malloy

Forces impacting Customer Expectations • Rising Energy Costs • Technological Advances • Regulatory Policy • Social Policy • “Evolving” Customer Role Page 2

Evolving Customer Role • From “Consumer to Prosumer” • Little fish theory no longer relevant • Energy “production and consumption” aggregation economy Page 3

Utility Industry at a Glance • Capital investments driving lower returns and thus higher rates. • Historic natural organic growth waning and unsustainable. • Energy efficiency measures by utilities likely will drive growth negative in the short run. • Technological advancements eliminates “cost of entry” barrier. Everyone is or can be a energy market participant. • Distributed energy resources will be slow to materialize given near term economics • Reliability remains the central theme driving quality of life and economic prosperity. • Page 4

Sustainable Initiatives • Electric Vehicle Charging Station Program • Green Energy Program • Solar — Universal Solar — Industrial / Large Commercial Solar — Community Solar • R&D EPRI Battery Project • Net Metering Program Page 5