FINDING VALUE IN THE ENERGY FUTURE

The document argues that the energy transition provides opportunities for utilities to serve low-and moderate-income (LMI) customers through innovative models such as on-bill financing, community solar, and virtual power plants. It highlights the systemic inequities LMI customers face, including a median energy burden of 7.2% compared to 2.3% for others, and the historical siting of polluting power plants in these communities. The report details eight specific program models—ranging from utility-owned PV systems to integrated service bundles—and emphasizes the need for utilities to shift from simply informing customers to empowering them in decision-making processes. It concludes that these shifts align with a broader utility evolution from an expanded monopoly toward a transformed platform operator.

• Low-and moderate-income (LMI) customers face significant energy affordability challenges and environmental inequities. The median energy burden for low-income households is 7.2% of income, compared to 2.3% for other households, with some areas like Memphis, TN reaching as high as 13%. Additionally, 68% of African Americans and 40% of Latino people in the US live near a polluting power plant.
• Traditional utility support for LMI customers has relied heavily on bill assistance and discount programs, which are often oversubscribed and budget-constrained. The Low Income Home Energy Assistance Program (LIHEAP) is a primary federal tool, but only a small portion of its funding is dedicated to home improvements via the Weatherization Assistance Program (WAP).
• The report identifies eight innovative models for utilities to serve LMI customers: (1) on-bill financing for energy efficiency, (2) utility-owned PV systems via lease/subscription, (3) utility-administered philanthropic/government funding for customer-owned systems, (4) controllable load devices for demand response, (5) income-qualified rate design, (6) thermal electrification for propane/oil users, (7) solar-plus-storage virtual power plants, and (8) integrated bundles of energy, mobility, water, and broadband services.
• Successful implementation of new LMI models requires a shift in collaboration from 'informing' to 'empowering' communities. This involves moving from simply providing objective information to enabling community members to have sole decision-making authority over new programs, supported by utility professionals in consultative roles.
• The integration of distributed energy resources (DERs) is driving a shift in utility business models from an 'Expanded Monopoly' (where utilities own and finance assets) to a 'Transformed Platform Operator' (where utilities act as neutral asset integrators for market activity).

APA

Billimoria, S., Chan, C., Henchen, M., & Shwisberg, L. (2018). FINDING VALUE IN THE ENERGY FUTURE. RMI. https://rmi.org/app/uploads/2018/09/090418-Leap-Utility-Business-Models-V2.9-1.pdf

Chicago

Billimoria, Sherri, Coreina Chan, Mike Henchen, and Lauren Shwisberg. FINDING VALUE IN THE ENERGY FUTURE. RMI, 2018. https://rmi.org/app/uploads/2018/09/090418-Leap-Utility-Business-Models-V2.9-1.pdf.

Wikipedia

{{cite report |last1=Billimoria |first1=Sherri |last2=Chan |first2=Coreina |last3=Henchen |first3=Mike |last4=Shwisberg |first4=Lauren |title=FINDING VALUE IN THE ENERGY FUTURE |publisher=RMI |date=2018 |url=https://rmi.org/app/uploads/2018/09/090418-Leap-Utility-Business-Models-V2.9-1.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{billimoria2018finding, author = {Billimoria, Sherri and Chan, Coreina and Henchen, Mike and Shwisberg, Lauren}, title = {{FINDING VALUE IN THE ENERGY FUTURE}}, institution = {RMI}, year = {2018}, url = {https://rmi.org/app/uploads/2018/09/090418-Leap-Utility-Business-Models-V2.9-1.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }