Utility companies find themselves caught between converging trends that are depressing their revenue: increasing energy efficiency that cuts usage, the rapid growth of renewable energy sources bought at premium prices, and new EPA regulations to limit output from their legacy, coal-fired power plants. The result? Sinking sales, rising costs, and a flat-lining bottom line. Reinventing a decades-old business model in the energy sector will not be not easy. But one thing is clear: the traditional practice of pay-for-volume of use is on the way out.
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