Utility demand stopped moving in a straight line, and planning has to catch up.

A power plant can be fully built, with a multimillion-dollar investment already committed, and still generate zero revenue. The asset is ready, but the project stays stalled waiting on studies, technical validation, and the approvals needed to connect to the grid.

Meanwhile, the utility keeps buying power on the wholesale market. The delay strains debt management, disrupts the investment timeline, and constrains the expansion decisions that come next.

It’s a clear example of what defines utility planning today: a single technical variable can cascade all the way to a project’s financial outcome. For years, the key question was how much demand would grow. Today, the central question is what happens to the entire plan every time one of its variables changes.

Planning was never simple for a utility. These are capital-intensive organizations, with long-lived infrastructure and decisions subject to regulation and public scrutiny. That complexity isn’t new. What changed is how fast the environment they plan around now moves. Assets are built to run for 30 or 40 years, but the context that justified an investment can shift several times before it ever goes into operation.

For decades, historical demand trends offered a fairly reliable base for forecasting. That reference has since lost much of its value. The energy transition, transportation electrification, and above all the expansion of artificial intelligence and data centers are now disrupting variables that used to evolve gradually.

The scale of the shift shows up in the forecasts themselves. According to Grid Strategies, the aggregate five-year summer peak demand growth forecast for the United States went from 24 GW in 2022 to 38 GW in 2023 and 64 GW in 2024. The 2025 report pushed that figure to 166 GW by 2030, more than six times what was projected just three years earlier. Data centers account for roughly 55% of that projected growth.

“We started from a demand curve that was practically flat. Projects could be planned ten years out because consumption grew slowly. Then everything started to change,” says Pablo Molina, Vertical Specialist DAPLAN at Quanam.

But demand is only one variable in motion. For a small or mid-sized utility, a sudden jump in transformer prices or a longer supplier lead time can throw off a five-year investment plan. And an interconnection delay can stop a project that’s already been built.

From forecasting to simulating

Against that backdrop, building a single forecast is no longer enough. The value lies in being able to change any variable and trace how its effects ripple through the rest of the model, including the projected financial statements for the years ahead.

“Planning is no longer just about building a forecast. The biggest value is being able to ask what happens if this variable changes, and trace that impact all the way to the bottom line,” Molina notes.

In practice, that means systematically testing scenarios: what happens if demand accelerates, if a supplier changes its costs, if a connection is delayed, if interest rates rise, or if a regulatory change alters the terms of an investment.

Each shift stops being a surprise and becomes a scenario that can be anticipated, quantified, and compared.

Doing this rigorously means the data can’t stay siloed. Asset condition, maintenance schedules, supply costs, construction timelines, and demand forecasts all need to be assessed together.

When Engineering, Operations, Regulatory, and Finance work off different versions of the data, each team can build a view that’s valid from its own angle but incomplete for the organization as a whole. Simulating scenarios requires a shared foundation.

Why it weighs more on public power utilities

The cost of a bad forecast isn’t the same for every organization. It hits hardest at small and mid-sized public power utilities in the United States, which answer directly to city councils, local boards, and the communities they serve.

These organizations don’t have the same financial cushion or regulatory resources as a large investor-owned utility.

The margin for error is thin. Overbuilding capacity passes avoidable debt on to customers. Underinvesting can compromise service reliability and limit local economic growth. And every decision has to be justified to regulators and ratepayers.

Utilities still have to make decisions that will shape their operations for decades. The difference is that they now have to do it in an environment that can shift multiple times over the life of a single investment.

Historical data is still necessary, but it’s no longer enough to anticipate what’s next. If the conditions that investments are built on have changed, the way they’re planned has to change too.

In the next article, we’ll look at what it takes to build integrated planning, why a single source of truth becomes critical, and how to move from static budgets to continuous processes that can respond faster.

Source: DAPLAN. Original post: https://daplan.us/resources/resource-center/utility-planning-under-demand-volatility-and-financial-pressure-part-1 

MARIETTA, Ga. — November 5, 2026—GDS Associates, Inc. (“GDS”), a market-leading provider of power consulting and advisory services to the U.S. energy industry, has announced the acquisition of Phoenix Consulting, a California based consultancy specializing in providing tailored services to clients in the energy industry.

The acquisition strengthens GDS’s position within the CAISO and Western Market region, expanding relationships with generation owners and developers, marketers and traders, regulatory and oversight bodies, state agencies, utilities, trade associations, law firms, and retail energy service providers.
“This acquisition reflects our commitment to expanding the depth and breadth of expertise we provide to our clients,” said Miki Deric, CEO of GDS Associates. “Phoenix Consulting has built a strong reputation for extensive experience and trusted client relationships, aligning perfectly with the values and mission of GDS.”
Phoenix Consulting is led by founder Susan Schneider, who adds 40+ years of retail and wholesale experience and a unique perspective on the California market to GDS. “Joining GDS Associates marks an exciting new chapter for Phoenix and our clients,” stated Schneider. “We share GDS’s commitment to technical excellence and long-term client partnerships and look forward to expanding the personalized service our clients value.”
Together, the firms will continue providing clients with strategic guidance on emerging industry challenges while also delivering the practical implementation and client-focused solutions necessary to achieve measurable results. 
###

About GDS Associates
Founded in 1986, GDS Associates is a consulting and engineering firm dedicated to serving the electric utility industry. GDS provides advisory and technical services supporting planning and analysis, rates and regulatory strategy, energy efficiency, and transmission and distribution engineering. Headquartered in Marietta, Georgia, with offices across the United States, GDS is recognized for its technical expertise, integrity, and collaborative culture. Learn more at www.gdsassociates.com.

Media Contact: Acquisitions Contact:
Vickie Forte Daniel Powers
Marketing Manager Chief Development Officer
GDS Associates GDS Associates
vickie.forte@gdsassociates.com daniel.powers@gdsassociates.com
 

Ask a line crew where the bottleneck is at their operations center, and you’ll get an answer fast. The trucks don’t fit in the bays. Materials are stored in three different places. The locker room was built for half the crew. The dispatch room is in what used to be a break room. The same is true at headquarters, where member services, engineering and administration are working in space that was never planned for them.

For many public power utilities, the facilities that keep the lights on were built decades ago, for a different utility. Since then the fleet has grown and trucks have gotten bigger. Storm response has become more demanding. Technology, from SCADA to AMI to fiber, now needs space, security and redundancy. And the customers and boards these utilities answer to expect every capital dollar to be justified.

The result is that facility decisions often get made one emergency at a time. A roof gets replaced here, a warehouse gets added there. Each choice makes sense alone, but together they can lock a utility into facilities that no longer work.

Start with a plan, not a building

A facility planning study steps back before any design or construction begins. It answers three questions:

What do we have? A physical condition assessment of each facility on every site, including headquarters, operations centers, warehouses and outlying service centers. It looks at structure, roofing, mechanical, electrical and plumbing systems, and site conditions. Leadership gets a clear picture of what’s sound, what’s near the end of its life and what it will cost to keep running.
What do we need? A needs assessment draws on interviews with staff in every department, from line operations and fleet to engineering, member services and administration. It turns how people actually work into space requirements. That includes headcount, vehicle and equipment counts, materials storage, and growth over the next 20 to 30 years.
What should we do? A functional analysis compares the options: renovate, expand, consolidate, relocate or build new. It includes conceptual site plans and budget pricing so leaders can compare real alternatives instead of guesses.

Why it matters for public power

Public power utilities face particular pressure to show they’re managing community assets responsibly. A facility planning study gives general managers and boards a documented, objective basis for capital decisions, one they can share with their city council, utility board or ratepayers. It also helps sequence the work. Utilities can phase projects over several budget cycles instead of facing one large, unplanned expense.

Planning also brings up issues that are easy to miss day to day:

Resilience: Can your critical facilities operate through a major storm or outage? Is critical equipment protected?
Safety and security: Do traffic patterns separate heavy vehicles from staff and the public? Are yards and buildings secure?
Recruitment and retention: Modern, functional facilities help utilities compete for skilled line workers and staff.
Customer experience: Does the public-facing space reflect the service the utility wants to provide?

What a study looks like in practice

A thorough facility planning study typically takes four to six months. It starts with site visits and staff interviews, moves through condition and space analysis, and ends with a final presentation to leadership. That presentation lays out recommended options, conceptual plans and pricing. Utilities with several locations can evaluate the whole system at once, so investments in one facility support the others.

The most valuable result is often agreement, not just a document. When operations, engineering, finance and leadership all see the same data, decisions move faster and with fewer surprises.

From plan to project

A planning study is most useful when it connects directly to design and construction. Under a design-build approach, the same team that helped define the needs carries that knowledge into design, pricing and construction. That shortens schedules, keeps the budget tied to the original plan and gives the utility one point of accountability.

About Cooperative Building Solutions

Cooperative Building Solutions (CBS) is a national design-build firm that works exclusively with utilities. Headquartered in St. Louis, CBS has served electric cooperatives, public power utilities and rural broadband providers across 40 states. As a full turnkey provider, CBS takes a facility from start to finish with one point of accountability. That includes facility planning studies, design, construction and ongoing support for facilities. To learn more, visit buildcbs.com.
 

Installing solar panels is a good first step toward reducing your energy bill, but your home’s energy habits matter, too. Improving efficiency and considering electric upgrades can help reduce energy use and increase long-term savings.

Store energy for later

A home battery energy storage system (BESS) can store extra solar energy produced during the day so it can be used at night or during cloudy weather. Battery storage can also provide backup power during some outages, depending on the system and how it is installed. Check with your utility about safety requirements and possible incentives.

Look for ENERGY STAR appliances

When upgrading appliances, look for the ENERGY STAR label. These products are designed to reduce energy use while still providing strong performance.

If your refrigerator, dishwasher, washer, dryer or other major appliance is more than 10 years old, compare its energy use with newer models before you replace it. Savings vary by product, but efficient appliances can help reduce household energy use, especially when paired with solar.

Consider how an EV fits your energy goals

Electric vehicles (EVs) can also be part of your home energy plan. Charging during off-peak hours or using stored solar energy may help make your commute more affordable.

Some newer EVs also support bidirectional charging, which means the vehicle can send electricity back to a home during an outage or emergency.
Improve heating and cooling efficiency

Heating and cooling are among the largest energy uses in most homes and comprise approximately half of the average household’s energy bill. A heat pump can provide both heating and cooling in one efficient system. Instead of creating heat, it moves heat from one place to another. In the winter, it brings heat into the home. In the summer, it works like an air conditioner by moving heat out.

Air-source heat pumps are the most common type and work in a variety of climates. An outdoor unit warms or cools the coils, then circulates warmed or cooled air through your home’s air ducts and into rooms. Air-source heat pumps are also available for homes without air ducts, in a ductless version called a mini-split heat pump. They deliver two to four times more heat energy than the electricity they use.

Geothermal, or ground source, heat pumps transfer heat to or from the ground (or nearby water source). They often cost more to install than other types, but can use less energy than standard systems and may be a good option for homeowners planning a long-term upgrade. These are well-suited for extreme climates.

Make solar work harder for you

Solar panels can help lower your energy bill, but the biggest savings can be realized by using less energy in the first place. By improving efficiency and exploring electric upgrades, you can reduce energy use and generate savings. Learn more about sustainable energy and energy efficiency at SafeElectricity.org.