Rewired relationship: Technology is changing how utilities provide energy to and interact with their customers.

• Author: Saylor, Teri
• Position: SPONSORED SECTION: ENERGIZED

North Carolina regularly ranks at the top of superlative lists such as the best state in which to live, work or start a business. Those accolades have spurred growth in its population, which U.S. Census Bureau estimated at 10.2 million in 2016, up from 8.9 million a decade earlier.

But as its population continues to increase, energy use in North Carolina is leveling off. Washington, D.C.-based U.S. Energy Information Administration says 57,902 million kilowatt hours of residential retail electricity was sold in 2015, compared with 62,160 in 2010 and 54,073 in 2005. It's neither by magic nor residents sitting in the dark. Its the result of technology, which is changing the way energy is used and how utilities and their customers interact.

Charlotte-based Duke Energy Corp. provides electricity to most North Carolinians. The exceptions are the extreme northeastern corner of the state, which is supplied by Richmond, Va.-based Dominion Energy Inc., and portions of 93 of the state's 100 counties that are served by 26 independent electric cooperatives. Municipalities and universities own and operate more than 70 electric systems in the state.

Under the traditional model, utilities build assets by selling electricity. Those assets fuel capital investment, earn a return on investments and cover expenses. But Lee Mazzocchi, senior vice president of grid solutions for Duke, says the model is evolving. Utilities are modernizing their grids, introducing smart meters, experimenting with energy-storage devices and diversifying generation. "These changes in energy resources and technology are bringing about changes in how utilities provide energy as a service going forward. Back in the day, large power plants were a centralized power generator, which sent energy through transmission lines to distribution stations to customers. Today, we are focused less on central energy production and more on smaller distribution centers across the system."

But it's not only the utilities that are changing. Mazzocchi says technology is giving consumers the opportunity to be more involved. "They want to use technology for services such as receiving energy usage alerts. They want to be able to actively control their energy costs. We are moving toward an era of delivering a more value-added service to the customer, including providing more information and being more customer focused. The customer is getting more choice and control over their experience, and we want to be...