Survey of 500 utility executives reveals disruption, AI, and increased demand are creating a complex new energy economy—one that’s far harder to manage than to imagine
West Monroe, a global business and technology consulting firm, today released its latest research showing that the energy transition is no longer on the horizon—it’s the baseline. Based on a survey of 500 energy and utility executives, the research reveals utility leaders are entering a new era defined not by planning for change in how energy is delivered and consumed, but by managing unprecedented complexity. The research was published in a report titled “The New Energy Economy.”
The primary gap: Nearly 8 in 10 utilities (78%) experience regulatory pressure to decarbonize, but only 18% feel very prepared to meet state targets, underscoring a significant gap between vision and readiness. As demand from data centers, electrification, and extreme weather accelerates, utilities are now navigating an economy where reliability, affordability, and sustainability must be achieved all at once.
What’s contributing to the gap:
- Tariffs are raising costs and delaying projects. 50% say tariffs have increased equipment costs, while 45% report supply chain disruptions and 44% have faced project delays.
- Demand growth is outpacing planning. 75% feel ready for new demand, yet only 25% have full plans for data center growth.
- Infrastructure gaps remain. Just 23% feel very prepared to integrate distributed energy resources.
- AI integration is accelerating—but ROI remains elusive. 75% of utilities are adopting AI, but only 13% can clearly measure return on investment.
The report also covers how utilities are engaging customers and securing regulatory support for critical investments, among other topics.
“The debate over the energy transition is over—most utilities know what must be done and are meeting the challenge. But a lot stands in the way of them achieving the vision,” said Paul DeCotis, senior partner in West Monroe’s Energy & Utilities practice and lead author of the report. “Those executing fastest aren’t waiting for regulatory conditions to catch up to their needs—instead, they’re seeking and earning approval through business cases built on safety and reliability. And they’re adopting proven tools and practices into day-to-day operations.”
The research highlights that utilities leading in this environment are prioritizing proven, scalable technologies—such as renewables, electric vehicles, and storage—while building organizational capabilities around execution, data quality, regulatory strategy, and workforce readiness.
The report also offers a to-do list for utility leaders from improving AI governance to future-proofing grid infrastructure to help close the execution gap and lead in the new energy economy.
The research, “New Energy Economy,” surveyed 500 energy and utility executives at investor-owned utilities, municipal utilities, and cooperatives across the United States in April 2025. The survey was conducted by Rep Data on behalf of West Monroe.
West Monroe helps electric, gas, and water utilities from strategy through execution. The team specializes in grid modernization, distributed energy resource proliferation, utility customer solutions, regulatory strategy, digital transformation, electrification, field operations, cybersecurity, IT business process optimization, and asset management. West Monroe has partnered with more than 125 utility clients, including 9 of the top 10 largest companies.
Read the full report here: https://www.westmonroe.com/insights/the-new-energy-economy.
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