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  • June 2015 (Revised August 2018)
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American Electric Power: Facing the Challenges of Distributed Generation

By: Richard H.K. Vietor and Hilary White
  • Format:Print
  • | Language:English
  • | Pages:32
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Abstract

American Electric Power, like most utilities in the USA, is currently exposed to distributed generation and the problem of net-metering. Solar installations in particular have been heavily subsidized, by the state and by regulation, which does not allow grid operators to recover their fixed costs. This results in stranded assets and cross-subsidies from poor to rich.

Keywords

Electricity; Utilities; Electric Power Generation; Net Metering; Distributed Generation; Disruptive Innovation; Energy Markets; Solar Power; Wind Power; Solar; Wind; Subsidies; Legislation; Regulation; Disruption; Energy; Energy Generation; Renewable Energy; Problems and Challenges; Risk and Uncertainty; Information Technology; Business Strategy; Corporate Strategy; Energy Industry; Green Technology Industry; Utilities Industry; United States

Citation

Vietor, Richard H.K., and Hilary White. "American Electric Power: Facing the Challenges of Distributed Generation." Harvard Business School Case 716-008, June 2015. (Revised August 2018.)
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About The Author

Richard H.K. Vietor

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Related Work

    • June 2015 (Revised August 2018)
    • Faculty Research

    American Electric Power: Facing the Challenges of Distributed Generation

    By: Richard H.K. Vietor and Hilary White
Related Work
  • American Electric Power: Facing the Challenges of Distributed Generation By: Richard H.K. Vietor and Hilary White
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