Why the utility industry is misreading affordability risk, and what it costs on the balance sheet.

Most utility affordability analysis starts and ends with rate levels. If the answer is "defensible," the assumption is that risk is managed.

That assumption is wrong, and it's costing the industry between $1.1 billion and $3.7 billion every year in bad debt, excess call volume, and enrollment campaigns that miss the customers who need them most.

BlastPoint analyzed 788 electric and gas utilities and found that affordability risk is driven by poverty concentration in service territories, not rate levels. The utilities carrying the most exposure often don't know it. The Defensible tier leaks more in absolute dollars than the Most Exposed tier.

What you'll learn