Richard Sedano highlights challenges of utility regulation over the next decade or two as reflected in a new report titled “Risk-Aware Electricity Regulation: Risk Mitigation Benefits of Energy Efficiency in Long Term Utility Investment.” State regulatory utility commissions will preside over some of the most important investments in the history of the U.S. electric power sector during perhaps its most challenging and tumultuous period. This report seeks to provide regulators with a thorough discussion of risk, and to suggest an approach—“risk-aware regulation”—whereby regulators can explicitly and proactively seek to identify, understand and minimize the risks associated with electric utility resource investment. Among the conclusions shared are that regulation and operating utilities will get more challenging with more risk, that new business models, regulatory practices and paradigms are timely, affirmative risk management can avoid expensive mistakes and energy efficiency will do well in risk-aware regulation.