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All sourcesNASA NTRSDOE OSTI
DOE OSTI2024

FEED Study of CarbonCapture Inc DAC and CarbonCure Utilization Technologies Using United States Steel’s Gary Works Plant Waste Heat (Final Report)

The University of Illinois at Urbana-Champaign (UIUC) led this project to produce a front-end engineering design (FEED) study of an advanced Direct Air Capture and Utilization System (DACUS) system that can remove a minimum of 5,000 tonnes/yr net of carbon dioxide from air (based on cradle-to-gate LCA) and utilizing the CO 2 to produce low carbon intensity ready mix concrete. The designed system, if built, would be larger than any currently existing Direct Air Capture (DAC) collector in the U.S. Such carbon capture technologies are critical to meeting the goals of the DOE’s program to accelerate climate-critical technology. In addition to the power sector, industrial facilities for the manufacture of steel and cement/concrete are among the major sources of anthropogenic CO 2 . DAC is a promising new technology for reducing CO 2 , a potent greenhouse gas, in the atmosphere but is expensive, in part due to the energy required to adsorb and desorb captured CO 2 during cycles. By integrating CarbonCapture Inc. (CCI) DAC modules at United States Steel's Gary Works (USS) and utilizing the site's waste heat, energy, and location this project evaluates the feasibility of utilizing the captured CO 2 and the logistics of transportation. CarbonCapture Inc. has developed an innovative DAC system using novel adsorbents to cost-effectively capture CO 2 . The captured, liquified gas will be trucked to ready-mix concrete plants within the region, the closest of which is approximately 3.5 miles away, where CarbonCure will inject it into concrete during the mixing process at the facilities. The carbon dioxide reacts with concrete, mineralizing into calcium carbonate (CaCO 3 ), permanently locking the greenhouse gas into the matrix of the building material. This FEED study demonstrated a full CO 2 value chain for DACUS from industrial facilities. It also provided a means for Visage Energy Corp. (Visage) to assess the impact of this holistic approach on job creation, regional economic impact, and environmental justice. The project team also included Sargent & Lundy (S&L) to provide the constructability review and costing of the integration of the DAC with the steel plant. Ecotek Engineering USA, LLC designed the outside battery limit (OSBL) infrastructure to connect the DAC and the plant. Activities performed during the project included: (1) Project Management Plan; (2) Technology Maturation Plan (TMP); (3) Initial Workforce Readiness Plan; (4) Workforce Readiness Plan; (5) Front-End Engineering Design (FEED) Study; (6) Project Design Basis; (7) Hazards and Operability (HAZOP) Study; (8) Constructability Review; (9) Project Cost Assessment; (10) Logistics Analysis of CO 2 Transportation to the Utilization Site; (11) Business Case Analysis; (12) Life Cycle Analysis (LCA); (13) Environmental Health and Safety (EH&S) Analysis; (14) Environmental Justice Analysis; and (15) Economic Revitalization and Job Creation Outcomes Analysis. This report provides a summary of the outcomes and results of the project, which was performed between Oct. 1, 2022, through Sept. 30, 2024.

32 ENERGY CONSERVATION, CONSUMPTION, AND UTILIZATI↗
DOE OSTI2018

Expanding PV Value: Lessons Learned from Utility-led Distributed Energy Resource Aggregation in the United States

Distributed PV capacity in the United States has increased from about 0.4 Gigawatts (GW) in 2010 to 10.5 GW in 2017 (GTM Research and SEIA 2018). When distributed PV is coupled with other emerging distributed energy resources (DERs) like battery storage and electric vehicles (EVs) they can provide demand response, voltage regulation, and other grid services. When many DERs are aggregated and called upon to provide these services simultaneously they may offer the same or more value than large, centralized power producers. In the United States, utility efforts to aggregate DERs are in the nascent stage. If initial DER aggregation programs prove successful, it could open new value streams for PV and other emerging DERs, thereby expanding deployment and transforming the energy market. The literature on the scope, performance, and lessons learned from utility-led DER aggregation programs is limited. This report fills this research gap, first by surveying utility-led DER aggregation programs nationwide, and then providing a deeper analysis of five utility pilots. We compare lessons learned across the five cases to develop a list of common challenges and related solutions that other utilities might consider when developing next generation programs.

14 SOLAR ENERGY↗
DOE OSTI2017

Adopting Energy-Efficient Technologies for Street Lighting: Overcoming Challenges for Utilities

This brief discusses energy-efficient street lighting technologies and conversions from the utility’s perspective and identifies various business cases for undertaking street lighting upgrades. Section 1 of the brief reviews the costs and benefits of utility investment in energy efficiency technologies and smart infrastructure for utility-owned streetlights. Section 2 presents lessons learned and best practices for light-emitting diode (LED) conversions for utility-owned street lights. Section 3 discusses street light buyback options from the utility’s perspective. Section 4 reviews success factors for LED conversions. The resources listed at the end of the brief provide more information.

32 ENERGY CONSERVATION, CONSUMPTION, AND UTILIZATI↗
DOE OSTI2023

Collaborating with Utilities to Meet Underserved Community Needs: A Guide to Equitable Commercial Solar and Solar + Storage Deployment

Communities of color and low-income populations dedicate a disproportionate amount of their income to pay for energy. They also experience more frequent and prolonged service disruptions, impacting community health and safety. When designed correctly, commercial solar + storage installations have the potential to ameliorate these issues. However, utility programs created to support such installations are frequently underutilized because communities often lack the time and resources needed to access them. Further, historically, few utilities have had the motivation and incentives or experience to account for this barrier. RMI provided process support to Solar Energy Innovation Network teams, and described their experiences in accessing these clean energy resources to support historically underserved communities in our latest report. The report also outlines the roles of key stakeholders (e.g., utilities, building owners, and community organizations) in supporting program delivery and recommended practices to collaborate to meet community needs. The report focuses on commercial solar and solar + storage resources, including solar + storage microgrids. These technologies can offer benefits to communities who do not own their own properties. When designed to act as a "resilience hub," they can also support communities in times of electricity disruption. The report includes a step-by-step guide to collaborating with utilities to implement programs for historically underserved customers. Utilities can support these projects with financing assistance, modernized rate designs, and, in the deployment phase, technical assistance for system design and interconnection.

14 SOLAR ENERGY↗
DOE OSTI2026

Strategies for Flood Resilience and Grid Investment Among Iowa's Electric Distribution Utilities

Flooding poses a growing threat to Iowa's electric distribution system, yet utilities face significant data and modeling challenges in planning effective resilience investments. This report provides a foundational assessment of how distribution utilities in Iowa, investor-owned, municipal, and cooperative, approach resilience planning, with a focus on flood risk. It combines hazard characterization, review of state and utility practices, and application of NLR's Energy Resilience Analysis for Distribution Systems (ERAD) and Capacity Expansion Decision Support for Distribution Networks (CADET) tools. Using FEMA floodplains, Iowa Flood Center depth grids, and utility infrastructure data, the analysis quantifies asset exposure, simulates outage risks, and evaluates resilience strategies such as pole hardening, undergrounding, and substation protection. Results indicate that while feeder-level upgrades provide incremental benefits, the most significant reductions in outage risk are achieved through targeted substation interventions. The report highlights key data gaps, such as limited elevation data and fragility functions, and underscores the need for probability-weighted investment frameworks to address both frequent and catastrophic flood events. These insights aim to support utilities, state agencies, and federal partners in prioritizing resilience investments that safeguard Iowa's electric grid against future flooding.

24 POWER TRANSMISSION AND DISTRIBUTION↗
DOE OSTI2026

Examples of State and Utility Actions on Proactive Planning and Investments

As states across the U.S. confront rising electricity demand, clean energy deployment, grid modernization imperatives, and the integration of large new loads, some regulators and utilities are shifting away from reactive, “just-in-time” investment approaches toward more proactive planning and investment frameworks. This report compiles examples of jurisdictional and utility actions that reshape planning processes, cost recovery mechanisms, and performance oversight to anticipate—rather than simply respond to—future grid needs. Several themes emerge from state actions examined in this report. First, legislatures and commissions are increasingly directing utilities to proactively upgrade their distribution and transmission systems, reflecting a shift toward a forward-looking system that aligns planning with state policy goals. Second, states are establishing long-term, iterative planning frameworks that often feature multi-year horizons, biannual or annual compliance reporting, structured opportunities for stakeholder engagement, and emphasis on collaboration among utilities, regulators, and stakeholders. Third, states are actively investigating innovative cost recovery mechanisms designed to support accelerated electrification and grid modernization, while balancing consumer advocates’ concerns regarding the ratepayer financial risks of premature investments. Fourth, performance metrics and reporting requirements are being developed to ensure transparency and accountability for proactive investments. Fifth, methodological improvements in planning—such as aligning load forecasting assumptions, incorporating sensitivities, and considering load management potential across building, vehicles, storage, and demand response—are recurring areas of stakeholder focus across jurisdictions. Overall, these developments signify a growing recognition among state regulators, utilities, and stakeholders that proactive planning—supported by clear definitions, consistent and transparent methodologies, robust performance metrics, and innovative cost recovery mechanisms—is a tool that can be used to address the scale and urgency of contemporary grid needs.

electricity market↗
DOE OSTI2017

Genomic Reconstruction of Carbohydrate Utilization Capacities in Microbial-Mat Derived Consortia

Two nearly identical unicyanobacterial consortia (UCC) were previously isolated from benthic microbial mats that occur in a heliothermal saline lake in northern Washington State. Carbohydrates are a primary source of carbon and energy for most heterotrophic bacteria. Since CO2 is the only carbon source provided, the cyanobacterium must provide a source of carbon to the heterotrophs. Available genomic sequences for all members of the UCC provide opportunity to investigate the metabolic routes of carbon transfer between autotroph and heterotrophs. Here, we applied a subsystem-based comparative genomics approach to reconstruct carbohydrate utilization pathways and identify glycohydrolytic enzymes, carbohydrate transporters and pathway-specific transcriptional regulators in 17 heterotrophic members of the UCC. The reconstructed metabolic pathways include 800 genes, near a one-fourth of which encode enzymes, transporters and regulators with newly assigned metabolic functions resulting in discovery of novel functional variants of carbohydrate utilization pathways. The in silico analysis revealed the utilization capabilities for 40 carbohydrates and their derivatives. Two Halomonas species demonstrated the largest number of sugar catabolic pathways. Trehalose, sucrose, maltose, glucose, and beta-glucosides are the most commonly utilized saccharides in this community. Reconstructed regulons for global regulators HexR and CceR include central carbohydrate metabolism genes in the members of Gammaproteobacteria and Alphaproteobacteria, respectively. Genomics analyses were supplemented by experimental characterization of metabolic phenotypes in four isolates derived from the consortia. Measurements of isolate growth on the defined medium supplied with individual carbohydrates confirmed most of the predicted catabolic phenotypes. Not all consortia members use carbohydrates and only a few use complex polysaccharides suggesting a hierarchical carbon flow from cyanobacteria to each heterotroph. In summary, the genomics-based identification of carbohydrate utilization capabilities provides a basis for future experimental studies of carbon flow in UCC.

transcriptional regulation↗
NASA NTRS2022

Gateway Utilization Capabilities and Status

Gateway will be a space station orbiting the Moon that will enable long-term presence in deep space. As part of the National Aeronautics and Space Administration’s (NASA) Artemis mission, Gateway will serve as a cornerstone of human deep space exploration and scientific discovery and a steppingstone to Mars. NASA leads the Gateway Program and serves as the integrator of spaceflight capabilities and contributions of U.S. commercial and international partners, European Space Agency (ESA), Japanese Aerospace Exploration Agency (JAXA) and the Canadian Space Agency (CSA), to develop and utilize Gateway. This paper provides an overview of the following utilization capabilities of Gateway: spacecraft overview, internal and external accommodations, resources for utilization, and vantage point for Earth, Sun, and Moon observations. Three utilization payloads have already been selected to fly on Gateway as part of the initial modules, Habitation and Logistics Outpost (HALO) and Power and Propulsion Element (PPE) modules: European Radiation Sensors Array (ERSA), Heliophysics Environmental and Radiation Measurement Experiment Suite (HERMES), and Internal Dosimeter Array (IDA). This paper will provide a short summary of each payload, the value behind conducting each payload, and share an overview of future utilization goals of Gateway.

Gateway↗
DOE OSTI2016

Supporting Building Portfolio Investment and Policy Decision Making through an Integrated Building Utility Data Platform

The American Recovery and Reinvestment Act stimulus funding of 2009 for smart grid projects resulted in the tripling of smart meters deployment. In 2012, the Green Button initiative provided utility customers with access to their real-time1 energy usage. The availability of finely granular data provides an enormous potential for energy data analytics and energy benchmarking. The sheer volume of time-series utility data from a large number of buildings also poses challenges in data collection, quality control, and database management for rigorous and meaningful analyses. In this paper, we will describe a building portfolio-level data analytics tool for operational optimization, business investment and policy assessment using 15-minute to monthly intervals utility data. The analytics tool is developed on top of the U.S. Department of Energy’s Standard Energy Efficiency Data (SEED) platform, an open source software application that manages energy performance data of large groups of buildings. To support the significantly large volume of granular interval data, we integrated a parallel time-series database to the existing relational database. The time-series database improves on the current utility data input, focusing on real-time data collection, storage, analytics and data quality control. The fully integrated data platform supports APIs for utility apps development by third party software developers. These apps will provide actionable intelligence for building owners and facilities managers. Unlike a commercial system, this platform is an open source platform funded by the U.S. Government, accessible to the public, researchers and other developers, to support initiatives in reducing building energy consumption.

32 ENERGY CONSERVATION, CONSUMPTION, AND UTILIZATI↗
DOE OSTI2017

Beyond Widgets -- Systems Incentive Programs for Utilities

Utility incentive programs remain one of the most significant means of deploying commercialized, but underutilized building technologies to scale. However, these programs have been largely limited to component-based products (e.g., lamps, RTUs). While some utilities do provide ‘custom’ incentive programs with whole building and system level technical assistance, these programs require deeper levels of analysis, resulting in higher program costs. This results in custom programs being restricted to utilities with greater resources, and are typically applied mainly to large or energy-intensive facilities, leaving much of the market without cost effective access and incentives for these solutions. In addition, with increasingly stringent energy codes, cost effective component-based solutions that achieve significant savings are dwindling. Building systems (e.g., integrated façade, HVAC and/or lighting solutions) can deliver higher savings that translate into large sector-wide savings if deployed at the scale of these programs. However, systems application poses a number of challenges – baseline energy use must be defined and measured; the metrics for energy and performance must be defined and tested against; in addition, system savings must be validated under well understood conditions. This paper presents a sample of findings of a project to develop validated utility incentive program packages for three specific integrated building systems, in collaboration with Xcel Energy (CO, MN), ComEd, and a consortium of California Public Owned Utilities (CA POUs) (Northern California Power Agency(NCPA) and the Southern California Public Power Authority(SCPPA)). Furthermore, these program packages consist of system specifications, system performance, M&V protocols, streamlined assessment methods, market assessment and implementation guidance.

32 ENERGY CONSERVATION, CONSUMPTION, AND UTILIZATI↗
DOE OSTI2016

Mean Field Games for Stochastic Growth with Relative Utility

This paper considers continuous time stochastic growth-consumption optimization in a mean field game setting. The individual capital stock evolution is determined by a Cobb–Douglas production function, consumption and stochastic depreciation. The individual utility functional combines an own utility and a relative utility with respect to the population. The use of the relative utility reflects human psychology, leading to a natural pattern of mean field interaction. The fixed point equation of the mean field game is derived with the aid of some ordinary differential equations. Due to the relative utility interaction, our performance analysis depends on some ratio based approximation error estimate.

71 CLASSICAL AND QUANTUM MECHANICS, GENERAL PHYSIC↗
DOE OSTI2022

Industrial battery operation and utilization in the presence of electrical load uncertainty using Bayesian decision theory

Behind the meter battery storage is becoming increasing popular in all sectors, though enthusiasm has recently lagged in the industrial sector. Even though there may be many factors contributing to this including lack of innovation, prohibitive costs, and undesirable rate structures, a difficulty arises in accounting for uncertainty of electrical load in industrial facilities while still attempting to utilize battery storage as much as possible all while trying to achieve fiscal profitability. Here this study utilizes Gaussian process regression and Bayesian decision theory to organize load data and quantify electrical load uncertainty to properly and effectively discharge industrial battery storage. The study employs a simulation model to set battery load setpoints for the span of the utility billing period according to the degree of risk aversion. This combination of economic analysis according to utility billing period and utilization of degree of risk aversion to make decisions on the uncertainty of the data has not before been applied to battery storage. The method resulted in an annual average reduction of peak demand by 3.8 % at the lowest amount of savings and lowest risk aversion. The highest risk aversion resulted in an annual average reduction of peak demand of 7.5 %. The maximum reduction of peak load in any month was 13.8 % in the month of December with a relatively high risk aversion. With a the highest amount risk aversion tested, the model reduced demand ten of the twelve months of the year.

25 ENERGY STORAGE↗
DOE OSTI2022

Exploring the benefits of utilizing small modular device for sustainable and flexible shale gas water management

Growing shale gas extraction in recent years has triggered wide discussions on the associated freshwater requirement and wastewater management. Many optimization approaches have been developed for shale gas water management; however, most of the studies assumed permanent utilization of wastewater treatment facilities with fixed capacities. Considering the rapidly declining characteristics of shale gas wastewater production, these treatment facilities could remain largely underutilized after the first few months/years of production, making them less economically attractive. To maximize the capacity utilization of treatment facilities and further improve the economic performance of shale gas development, this study develops a systematic optimization framework, where the capacity strategy of conventional treatment facilities and utilization of the recent concept of modular manufacturing are both considered for flexible shale gas water management. The proposed mixed-integer linear programming (MILP) model simultaneously optimizes the design and planning of integrated shale gas and water supply chain, with a focus on capacity planning for both large-scale conventional treatment facilities and small-scale modular devices. A series of Marcellus-based case studies are performed to illustrate the applicability of the proposed model and provide general insights into the trade-offs between the multiple types of treatment facilities. The optimization results reveal that the combinatorial utilization of conventional facilities and modular devices for wastewater treatment (66% by conventional facilities and 34% by modular devices) brings 9.3% more reused water for other well development and 6.2% savings in water-related costs, compared to flexible management of only conventional facilities. Furthermore, this work suggests that taking modular device as auxiliary equipment for shale gas water management is most beneficial to increase the capacity utilization of treatment facilities and achieve a more economic and sustainable shale gas production system.

04 OIL SHALES AND TAR SANDS↗
DOE OSTI2020

Ion Mobility Spectrometry with High Ion Utilization Efficiency Using Traveling Wave-Based Structures for Lossless Ion Manipulations

Ion packets introduced from gates, ion funnel traps, and other conventional ion injection mechanisms produce ion pulse widths typically around a few microseconds or less for ion mobility spectrometry (IMS)-based separations on the order of 100 milliseconds. When such ion injection techniques are coupled with ultralong path length traveling wave (TW)-based IMS separations (i.e., on the order of seconds) using structures for lossless ion manipulations (SLIMs), typically very low ion utilization efficiency is achieved for continuous ion sources [e.g., electrospray ionization (ESI)]. Even with the ability to trap and accumulate much larger populations of ions than being conventionally feasible over longer time periods in SLIM devices, the subsequent long separations lead to overall low ion utilization. In this study, we report the use of a highly flexible SLIM arrangement, enabling concurrent ion accumulation and separation and achieving near-complete ion utilization with ESI. We characterize the ion accumulation process in SLIM, demonstrate >98% ion utilization, and show both increased signal intensities and measurement throughput. This approach is envisioned to have broad utility to applications, for example, involving the fast detection of trace chemical species.

37 INORGANIC, ORGANIC, PHYSICAL, AND ANALYTICAL CH↗
DOE OSTI2018

Conflicts in the coastal zone: human impacts on commercially important fish species utilizing coastal habitat

Abstract Coastal ecosystems are ecologically, culturally, and economically important, and hence are under pressure from diverse human activities. We reviewed the literature for existing evidence of effects of human-induced habitat changes on exploited fish utilizing coastal habitats. We focused on fish species of the Northeast Atlantic for which fisheries advice is provided by International Council for the Exploration of the Sea (ICES) and which utilize coastal habitats for at least one life-history stage (LHS). We found that 92% of these species are impacted by human activity in at least one LHS while utilizing coastal habitat and 38% in multiple stages. Anthropogenic pressures most commonly shown to impact these fish species were toxicants and pollutants (75% of species). Eutrophication and anoxia, invasive species, and physical coastal development affected about half of the species (58, 54, and 42% of species, respectively), while indirect fishing impacts affected a minority (17% of species). Moreover, 71% of the ICES advice species that utilize coastal habitats face impacts from more than one pressure, implying cumulative effects. Given that three-fourths of the commercial landings come from fish species utilizing coastal habitats, there is an obvious need for a better understanding of the impacts that human activities cause in these habitats for the development of ecosystem-based fisheries management.

Brown, Elliot J.↗
DOE OSTI2024

Utilization of lasso peptides for biodegradation of polycyclic aromatic hydrocarbons

Abstract Many microbial genes involved in degrading recalcitrant environmental contaminants such as polycyclic aromatic hydrocarbons (PAHs) have been identified and characterized. However, all molecular mechanisms required for PAH utilization have not yet been elucidated. In this work, we demonstrate the proposed involvement of lasso peptides in the utilization of the PAH phenanthrene in Sphingomonas BPH. Transpositional mutagenesis of Sphingomonas BPH with the miniTn5 transposon yielded 3 phenanthrene utilization deficient mutants, #257, #1778, and #1782. In mutant #1782, Tn5 had inserted into the large subunit of the naph/bph dioxygenase gene. In mutant #1778, Tn5 had inserted into the B2 protease gene of a lasso peptide cluster. This finding is the first report on the role of lasso peptides in PAH utilization. Our studies also demonstrate that interruption of the lasso peptide cluster resulted in a significant increase in the amount of biosurfactant produced in the presence of glucose when compared to the wild‐type strain. Collectively, these results suggest that the mechanisms Sphingomonas BPH utilizes to degrade phenanthrene are far more complex than previously understood and that the #1778 mutant may be a good candidate for bioremediation when glucose is applied as an amendment due to its higher biosurfactant production.

59 BASIC BIOLOGICAL SCIENCES↗
DOE OSTI2019

l3d2vtk: An MCNPTools Utility to Enable LNK3DNT File Visualization & Post-Processing

This paper describes recent work to develop and incorporate a utility program into the MCNPTools package that enables LNK3DNT file visualization & post-processing. A LNK3DNT file is a binary Cartesian, cylindrical, or spherical structured mesh file that describes material and material relative density distributions by mesh voxel. This mesh file format is principally used by the PARTISN discrete-ordinates radiation-transport code. However, the MCNP ® Monte Carlo radiation-transport code can use LNK3DNT files to specify geometry, and the MCNP code can produce LNK3DNT files representing a user-defined region of the MCNP constructive solid geometry (CSG). Because of the use of LNK3DNT files as MCNP input and output and with other computer codes, improving the ability to visualize and/or quantitatively post-process LNK3DNT files benefits end users. In particular, it is helpful to visually verify that the material and density distributions are as expected. Also, an analyst can orient viewers with respect to other in formation, e.g., by co-plotting a voxelized representation of MCNP CSG with mesh tally and/or particle track results. However, until now, the only capability to interactively interrogate LNK3DNT files is through a 2-D slice plotter provided by the Monte Carlo Application ToolKit (MCATK), which is not currently distributed outside of Los Alamos National Laboratory. The utility created as part of this work converts LNK3DNT binary files to an ASCII XML-based StructuredMesh VTK (.vts) file. The geometries supported are 1-D spherical and cylindrical ( r ), 1-D Cartesian ( x ), 2-D cylindrical ( r-z and r-θ ) and Cartesian ( x-y ), and 3-D cylindrical ( r-z-θ ) and Cartesian ( x-y-z ). This file format is chosen to minimize external dependencies (e.g., on an HDF5 library) and to provide a file that can be interrogated by the user in a text editor or standard visualization applications (e.g., ParaView or VisIt). However, other file formats may provide more utility such as XDMF, which can use HDF5 and is discussed further as something to explore as future work. This paper is organized as follows: a brief introduc tion to the MCNPTools library and utility programs is given, the LNK3DNT-to-VTK (l3d2vtk) utility functionality is de scribed, and then an example post-processing workflow using the ParaView application is given.

73 NUCLEAR PHYSICS AND RADIATION PHYSICS↗
DOE OSTI2017

The Effects of Rising Interest Rates on Electric Utility Stock Prices: Regulatory Considerations and Approaches

This technical brief identifies conditions under which utility regulators should consider implementing policy approaches that seek to mitigate negative outcomes due to an increase in interest rates. Interest rates are a key factor in determining a utility’s cost of equity and investors find value when returns exceed the cost of equity. Through historical observations of periods of rising and falling interest rates and application of a pro forma financial tool, we identify the key drivers of utility stock valuations and estimate the degree to which those valuations might be affected by increasing interest rates.3 We also analyze the efficacy of responses by utility regulators to mitigate potential negative financial impacts. We find that regulators have several possible approaches to mitigate a decline in value in an environment of increasing interest rates, though regulators must weigh the tradeoffs of improving investor value with potential increases in customer costs. Furthermore, the range of approaches reflects today’s many different electric utility regulatory models and regulatory responses to a decline in investor value will fit within state-specific models.

29 ENERGY PLANNING, POLICY, AND ECONOMY↗