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$186B for Grid Upgrades. Who Really Benefits? - Utilities will spend $186B on grid upgrades this year. Most of the cost will be passed to customers. Without better planning and oversight, the public could pay more without seeing real improvements in resilience, affordability, or control.

$186 billion. That’s what utilities will spend this year upgrading the grid. But are we getting our money’s worth?

According to Utility Dive, U.S. utilities are expected to spend $186 billion this year, mostly to upgrade the power grid. The goal is to handle fast-growing demand from data centers, electric vehicles, and AI. But while these investments are necessary, regulators are struggling to balance rising costs with fairness to customers.

This is one of the highest spending levels in decades. And most of the cost will be passed down to the ratepayers.

Utilities recover these costs through rate hikes and earn returns for shareholders.

That raises tough questions:

Are we modernizing the grid or just reacting to new demand using the same playbook?
Are we taking a long-term approach or chasing short-term fixes?
And if this spending is driven by AI and data centers, where's the upside for everyday customers?

So the big question is: if we’re paying more, what are we actually getting?

Prices have already outpaced inflation two years in a row. Yet, there’s little clarity on how much of this investment will actually improve resilience, affordability, or access.

Some regulators are rethinking how utilities justify spending.

A few states now require utilities to justify spending like a business loan, clearly outlining expected benefits, managing risk, and setting accountability benchmarks.

Others are using third-party audits or strict cost-benefit tests.

But many states still rely on older methods: limited planning frameworks, minimal customer input, and little transparency on how utility profits factor in.

So, is this about modernizing the grid, or just ensuring utilities stay profitable?

If ratepayers are footing the bill, what should they receive in return?Faster response to outages?Cheaper, cleaner power?More control over how the money is used?

And how does AI fit in? Does it make things more efficient—or just more energy-hungry?

$186 billion is a lot. But without better planning and oversight, it risks becoming just another sunk cost.

So what do you think?

Should utilities still get guaranteed profits off our bills?

Are we building long-term energy resilience, or kicking the can down the road?

And if the public pays for this transformation, what’s the payback?

https://www.utilitydive.com/news/utility-regulators-paradox-modernization-electricity-affordability/751526/?utm_source=SolarWakeup&utm_campaign=35dac57446-SolarWakeup_2_182_16_2013_COPY_01&utm_medium=email&utm_term=0_5eaa0aab62-35dac57446-44309045&mc_cid=35dac57446&mc_eid=941cff91d0

Author: Herman K. Trabish

$186 billion. That’s what utilities will spend this year upgrading the grid. But are we getting our money’s worth?

This is one of the highest spending levels in decades. And most of the cost will be passed down to the ratepayers.

Utilities recover these costs through rate hikes and earn returns for shareholders.

That raises tough questions:

Are we modernizing the grid or just reacting to new demand using the same playbook?
Are we taking a long-term approach or chasing short-term fixes?
And if this spending is driven by AI and data centers, where's the upside for everyday customers?