An industry coalition is proposing a new framework for measuring and optimizing grid utilization, repositioning peak constraints as opportunities for demand response rather than problems requiring new generation capacity.
Grid utilization is having a moment. Following Virginia's first-in-the-nation legislation enacted in April, states across the political spectrum—red, blue, and purple—have begun advancing grid utilization policy. Lawmakers, regulators, and utilities are searching for ways to meet surging electricity demand without increasing costs for consumers. Better utilization of existing grid infrastructure offers a promising solution. By various measures, the current grid operates at roughly half its total capacity, and research indicates that a 10% increase in grid utilization could save Americans more than $100 billion over the next decade.
This has become one of the rare energy policy issues commanding bipartisan support. Both the current Secretary of Energy and the immediate previous Secretary of Energy agree on its importance. Yet as policy momentum builds, a foundational question remains unanswered: how should grid utilization be measured?
That question shifts from theoretical to practical this month. By October 15, as required by Virginia's legislation, Dominion Energy and Appalachian Power must submit proposed utilization metrics to the Virginia State Corporation Commission—becoming the first utilities in America to undertake this process with a regulator. In advance of this milestone, Utilize Coalition and its members—Carrier, Google, LineVision, Renew Home, Sparkfund, SPAN, Tesla, and Verrus—have released a white paper proposing a framework.
At its core, our definition frames grid utilization as the share of deliverable energy that is actually delivered over a given period. We recommend reporting two complementary views: nominal utilization, based on a fixed reference rating, and operational utilization, based on usable capacity under defined operating and reliability conditions. Reporting both provides a transparent benchmark alongside the system context needed for planning and investment decisions.
This represents a fundamental shift in how we build and use the grid. Historically, we have always built to peak capacity—a necessity for ensuring reliable power during the hottest summer days and coldest winter mornings. While peak performance remains critical, the conventional focus obscures significant available capacity during off-peak hours. A decade ago, we lacked the flexibility tools to tap this latent off-peak capacity. Today we have them, and grid policy must evolve to match.
Measuring utilization can inform smarter planning decisions. It identifies where flexibility solutions—distributed energy resources, virtual power plants, grid-enhancing technologies—can create value, as well as where new traditional infrastructure is necessary or where new load could be accommodated without major investment.
The objective is not utilization for its own sake, but better outcomes for customers: more productive use of infrastructure, cost-effective accommodation of new demand, and greater affordability. Measuring utilization can surface these opportunities. Over time, that information can also support rewarding utilities for verified improvements in customer value.
Current grid utilization should be viewed not as a problem to bemoan but as an opportunity to exploit—a chance to advance affordability and free up capacity at a time when both are desperately needed. Aligning on a common measurement framework is the critical first step to unlocking that opportunity.