In a joint presentation with Denise Furey of Regent Square Advisors at the EUCI Conference “Utility 2.0,” Rich Sedano examined the challenges facing the electricity industry and encouraged state regulatory commissions to practice “risk-aware regulation.” Increasing distributed generation, the Clean Power Plan and other environmental imperatives, the prospect of revenue erosion due to efficiency and distributed resources, as well as changing net demand and expectations of reliable electricity service challenge the traditional regulatory model. By proactively identifying, understanding, and minimizing the risks associated with electric utility resource investment, states can deploy capital efficiently, ensure the financial stability of utilities, and align utility investments with public policy goals.