Utilities Emphasize Project Execution and Ratepayer Protections Amid Growing Backlogs and Public Backlash

Utilities are still promoting their data center pipelines, but they are also facing growing equipment backlogs and public backlash that has analysts questioning their ability to execute on all their projects and recover costs.

The industry is experiencing a shift in priorities, with affordability emerging as a key constraint. Analysts are now focusing on how effectively utilities allocate costs, protect existing customers, and demonstrate tangible customer benefits alongside shareholder returns.

This change in focus is a response to growing public concerns and the need for utilities to demonstrate that growth can benefit incumbent customers. The conversation is no longer just about identifying growth opportunities, but also about ensuring investments can be recovered in a manner acceptable to customers and policymakers.

Utilities are under pressure to allocate costs effectively, protect existing customers, and demonstrate tangible customer benefits. This is a significant change from the previous focus on growth opportunities.

## Backlogs and Public Backlash

Utilities are facing growing equipment backlogs and public backlash that has analysts questioning their ability to execute on all their projects and recover costs. The industry is experiencing a shift in priorities, with affordability emerging as a key constraint.

## Project Execution and Ratepayer Protections

The industry is now focusing on how effectively utilities allocate costs, protect existing customers, and demonstrate tangible customer benefits alongside shareholder returns. This change in focus is a response to growing public concerns and the need for utilities to demonstrate that growth can benefit incumbent customers.

## Gas Turbine Makers

The companies that design and build power infrastructure are less affected by these pressures. The three major gas turbine makers have announced backlogs ranging from 35 to 116 GW as they increase manufacturing capacity.

| Company | Backlog (GW) | | --- | --- | | | 35 | | | 116 | | | |

These companies are well-positioned to take advantage of the growing demand for power infrastructure. Their ability to increase manufacturing capacity and meet the growing demand for their products is a significant advantage in the current market.

The industry is undergoing a significant shift in priorities, with a focus on project execution and ratepayer protections. Utilities are under pressure to allocate costs effectively, protect existing customers, and demonstrate tangible customer benefits. The companies that design and build power infrastructure are less affected by these pressures and are well-positioned to take advantage of the growing demand for power infrastructure.