After years of investing at or near the rate of depreciation, many electric delivery systems have seen a huge influx of capital investment in smart grid and other energy management technologies. With natural gas commodity prices at historic lows, gas delivery systems face similarly large investment requirements.
Delivery (transmission and distribution) systems are typically managed on an incremental replacement basis; as aging equipment reaches the end of life, it is replaced, historically at the rate of depreciation plus population growth. For the last several years, however, many electric utilities have made significant infrastructure investments well beyond this historical rate; wholesale meter replacements, AMI/AMR, substation automation, etc. Electric delivery entities that have made these investments must now work to realize their full value potential; those that have not must learn from the initial wave of investment and tailor their strategies accordingly; and lastly gas delivery entities must develop their own 21st century approach to delivery.
Through our work developing the Delivery System of the Future with our clients, Bridge Strategy has utilized a comprehensive approach that focuses on developing market and regulatory strategies to implement new technologies such as Smart Grid, Distributed Generation, Energy Efficiency, and Demand-side Management solutions. Bridge has also worked with its clients to implement solutions across the grid to deliver value for the utility and economic benefits to customers.