The Future of Utilities, by Market Research Experts

At TRC, we provide custom insights for all types of companies needing guidance. From those that create leashes for dogs to those that have developed software to facilitate genomic sequencing. There are industries TRC has a preponderance of knowledge and experience, such as health care, fintech and utilities.

The utilities industry is interesting in that it has many of the needs of typical marketing—requires understanding of consumer opinions as well as addressing the perceptions of pricing, efficacy and customer satisfaction. However, as a public utility, it has more hurdles on company responses due to regulatory limitations, and its customers experience different changes in need due to their region’s climate and Mother Nature’s whims.

As 2024 wound down, TRC conducted one-on-one video interviews with utility experts—both clients and new contacts—to better understand their perspectives on the industry’s future.

While many insights reaffirmed existing trends, several key themes emerged:

1. Customers Perceive Energy Prices as High

Our experts told us that perceptions are that energy prices are high and getting higher. Perception becomes “reality” and is an issue utility companies should address. Nationally, residential energy prices vary by energy source and region but are not rising dramatically.

• Electricity: The U.S. Energy Information Administration (EIA) projects that in 2025, the average residential electricity price will experience only a 2% increase. Electricity rates do vary significantly by state. For instance, in March 2025, California’s residential rate was 20.34 cents per kWh higher than a state such as North Dakota.
• Natural Gas: Natural gas prices have been particularly volatile, often because of supply dynamics and infrastructure developments. Consumers have felt these changes differently depending on local energy policies and market conditions.
• Winter Heating: Despite forecasts for colder winters, heating costs have been stable, EIA estimating that heating costs for the typical natural gas-heated home will be slightly higher than 2024.

2. Climate Patterns and Extreme Weather Strain Reliability

Our utility professionals note weather volatility impacting energy needs. New climate patterns change the playing field. Extreme heat requires air conditioning. Cold winters call for more heat. Utility customers know this but make no allowances for their impact on perceptions of utility company reliability.

Utilities are challenged to provide power that is “more reliable, keep it affordable, make it resilient in these storms, and do that at an unprecedented pace.”

And Mother Nature throws in “these storms,” unplanned events that disrupt service, outside regulatory planning and are becoming more frequent.  For instance:

• Severe weather: The National Centers for Environmental Information notes a 10% increase in tornadic activity in the US in 2024 compared to 2023. 2024 also had 18 hurricanes, of which 5 were considered major.
• Wildfires: Wildfires are becoming a national problem as dry seasons change. In 2023-2024 there were major wildfires in states not known for such events: Colorado, Oklahoma and Texas. Even South Carolina saw significant wildfire activity.

3. Regulatory Hurdles Complicate Service Improvements

Unlike other industries, government regulations, designed to protect consumers, slow down progress. They often work against both the utility provider and the consumer.

“We have to make sure that our investments on behalf of our customers are prudent…For us to be more efficient in lowering your bill, we have to experiment. Well, the regulatory construct is not set up for experimentation.’

The modern world seems to move faster than planned, “regulations in place that made a lot of sense 50 or 100 years ago…like you have to have the lowest cost… are not always compatible with customer choice(s). The example of having EV stations, which are very expensive, would be the opposite of the regulatory construct.”

4. Stronger Local Communication Is a Must

Across-the-board opinion is that an evolving customer communication plan is needed for Utility company success among customers. Engaging with the local community is seen as critical. “We should be more than just a bill that you pay to keep your lights on.”  Plus, communication is the only way to manage customer expectations.

Internal market research teams are seeking better ways to translate customer insights into actionable strategies.

Looking Ahead

TRC expects continued demand for custom research in utilities, addressing these ongoing challenges. If you’d like more details from our expert interviews, contact us—we’d be happy to share our findings.