As states search for ways to meet surging electricity demand without driving up costs, grid utilization has moved onto the policy agenda. Virginia passed the first-in-the-nation utilization legislation in April, and other states are now exploring similar measures. In that context, the industry-led Utilize Coalition has released a white paper proposing a common framework for measuring how much of the grid's capacity is actually used.
The coalition defines grid utilization as the share of deliverable energy that is actually delivered over a given period. It recommends 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. The group argues that reporting both provides a transparent benchmark alongside the system context needed for planning and investment decisions.
The paper notes that by various measures, the grid currently operates at roughly half its total capacity, and research suggests a 10% increase in utilization could save Americans more than $100 billion over the next decade. It also points to rare bipartisan alignment, with both the current and previous energy secretaries supporting the idea. Better measurement, the coalition says, can help identify where flexibility solutions like distributed energy resources and grid-enhancing technologies add value, and where new traditional infrastructure is truly necessary.
The proposal arrives ahead of a concrete regulatory milestone: by Oct. 15, Dominion Energy and Appalachian Power must submit proposed utilization metrics to the Virginia State Corporation Commission, becoming the first utilities in the country to do so. The coalition emphasizes that the goal is not utilization for its own sake, but better outcomes for customers through more productive infrastructure use and cost-effective accommodation of new demand.