Electricity distribution utilities are facing an unprecedented
number of challenges. They are under significant cost pressures due
to the need to repair and replace aging infrastructure, and to
respond to provincial requirements to integrate renewable energy
sources into their systems. At the same time, they face declines in
their revenue due to, among other things, the effect of
conservation programs and the availability of alternative sources
of supply. Technological advances hold the promise of allowing
consumers, residential and commercial, to reduce their demand in
the short term and, in the long term, perhaps leave the grid
altogether. The ultimate risk for utilities is that the
traditional business model may no longer be viable, with the
attendant risk of stranding valuable assets.
