Customer Programs are Fundamental to Addressing Key Utility Challenges
by Bob Shively, Enerdynamics President and Lead Facilitator
Energy utilities today face unprecedented challenges as they balance grid reliability concerns, affordability issues, technology evolution, and clean energy goals while also attempting to address recent developments such as tariffs and economic uncertainty. A recent study from consulting firm ICF titled “Insights from Utility Program Leaders on Disruption and Opportunity” surveyed over 100 industry leaders and revealed the importance of customer programs in achieving key goals. 
Reliability: Load management takes center stage
As electrification accelerates, managing the growing load has become a key concern for maintaining grid reliability:
- 68% of utility leaders report that increasing electrification while meeting energy reduction goals is a moderate to significant challenge
- 63% rely on demand response strategies "all the time" or "often" to address capacity issues
- 98% of utility program leaders say they've had to rethink their energy efficiency programs to realize returns on investment
- 53% cite financing energy efficiency and load management measures as their biggest obstacle
The data suggests a fundamental shift in how utilities approach reliability. Rather than viewing efficiency programs as distinct from grid management, they're increasingly integrating demand-side management with distributed energy resources to maintain stability while accommodating growing energy demands from data centers, EVs, and electrification. This offers an alternative to building expensive peaking generation and upgrading transmission and distribution infrastructure.
Affordability: A need to engage and communicate
Energy affordability stands out as a universal concern among utility leaders, and a key strategy to address it is customer engagement and communication about available programs:
- 100% recognize that engaging economically burdened communities can boost program participation
- However, 93% admit they don't provide enough support to financially vulnerable communities
- 41% say transparency about program details is their most effective customer engagement strategy, followed by financing options, actionable tips and advice, financial incentives, and bill savings
- 39% cite clearly communicating financing options as key to successful customer engagement
The gap between recognizing affordability's importance and implementing effective solutions represents both a challenge and an opportunity. Utilities hope to address this gap through better communication, transparent financing options, and targeted support for vulnerable communities.
Technology: New technology will include customers in grid operations
Technology adoption is accelerating rapidly across utility operations, and much of this is related to customer programs:
- 100% of utility leaders report using AI for at least one aspect of their customer programs
- 65% view AI as a "game-changer" rather than an overhyped solution
- 61% feel mostly prepared to integrate customer programs using distributed energy resources
- 64% are using distributed energy resource management systems (DERMS)
- 57% cite upskilling existing workers as their top workforce challenge
- 57% prioritize grid modernization
The survey reveals utilities are enthusiastically embracing technologies like AI-powered customer segmentation, DER management, and automated monitoring. While smart meters changed the game 15 years ago, today's utilities are moving toward more sophisticated tools for managing increasingly complex grid operations.
Clean Energy: Goals require customer participation
Utilities recognize that customer participation is essential to achieving clean energy objectives. According to recent survey data:
- 45% of respondents point to decarbonization as a top goal of customer programs
- 100% of utility program leaders agree that customer programs without financing options will never reach their full potential
For clean energy initiatives to succeed, innovative tariffs, incentives, and accessible financing options are becoming non-negotiable requirements. The data suggests utilities are rethinking traditional energy efficiency and demand response programs to better align with both customer needs and company-wide decarbonization goals.
Challenges will continue
Utility leaders are shifting their thinking towards comprehensive system approaches that consider transmission, distribution, and supply/demand resources holistically. This requires integrating customer programs into other utility initiatives. Unfortunately, new challenges have arrived just as utilities are figuring out the new landscape. Recently announced U.S. energy policies coupled with tariffs will make it harder to access necessary technology, increase costs for vital equipment, delay projects, and eliminate sources of funding. These impacts will slow down the ability to evolve, will reduce options for addressing reliability, and will raise costs for consumers. At the same time, economic uncertainty adds additional challenges to forecasting future loads to determine necessary infrastructure construction. As with the earlier challenges, customer programs will provide low-cost options for addressing challenges.
For energy professionals, staying informed about the key role of customer programs will be essential for navigating the rapidly evolving landscape of the utility industry in 2025 and beyond.
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