A Strategic Framework for Utility Cost Control

RMI presents a strategic framework for utility cost control featuring 7 strategies and 16 regulatory levers. The framework aims to counter rising utility costs—driven by infrastructure spending, fossil fuel reliance, and outdated regulatory incentives—by promoting cost-efficiency, better planning, and coordinated regulation to ensure grid reliability and ratepayer affordability.

• RMI has developed a strategic framework for utility cost control consisting of 7 strategies and 16 regulatory levers to help regulators and stakeholders maintain affordability while meeting grid needs such as replacing aging assets, modernizing the grid, and preparing for load growth.
• Recent increases in utility costs are driven by several factors, including spending on T&D infrastructure, reliance on natural gas for electricity generation, wildfires, extreme weather, and slow technology adoption, all of which are exacerbated by traditional regulatory frameworks that create incentives contrary to cost control.
• The framework's seven strategies for ensuring ratepayer value include improving planning processes to anticipate needs, coordinating electric and gas regulation, lowering financing costs, rewarding utilities for cost-efficiencies, leveraging competition, prioritizing least-cost solutions to avoid inefficient expansion, and improving fuel management to mitigate fossil fuel price volatility.

APA

RMI (2025). A Strategic Framework for Utility Cost Control. https://rmi.org/resources/a-strategic-framework-for-utility-cost-control/

Chicago

RMI. A Strategic Framework for Utility Cost Control. 2025. https://rmi.org/resources/a-strategic-framework-for-utility-cost-control/.

Wikipedia

{{cite report |author=RMI |title=A Strategic Framework for Utility Cost Control |date=19 February 2025 |url=https://rmi.org/resources/a-strategic-framework-for-utility-cost-control/ |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{rmi2025strategic, author = {{RMI}}, title = {{A Strategic Framework for Utility Cost Control}}, institution = {RMI}, year = {2025}, month = feb, url = {https://rmi.org/resources/a-strategic-framework-for-utility-cost-control/}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }