Analysis

Unlocking service company value

US electric and gas utilities industry

​The US electric and gas utilities industry is transforming rapidly and on multiple fronts. For utility executives, the top-of-mind issues that will require substantial investment over the near term include disruptive technologies, changing environmental regulations, and grid modernization, among others.

Unlocking service company value

​In response to challenges such as disruptive technologies, changing environmental regulations, and grid modernization, some utilitiy executives are starting to reexamine their back office as a means to unburden their rates. They want to free up much needed headroom for today's pressing challenges and also recognize that if they could start with a clean slate, their operating models today might look quite different.

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A centralized service company provides services such as: administrative, managerial, financial, accounting, recordkeeping, legal or engineering services, which are sold, furnished, or otherwise provided (typically for a charge) to other companies in the same holding company system.

 

Service Company Defined by FERC

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