The utilization of sensors, communications, and computer technologies to create greater efficiency in the generation, transmission, distribution, and consumption of electricity will enable better management of the electric power system. As the use of smart grid technologies grows, utilities will be able to automate meter reading and billing and consumers will be more aware of their energy usage and the associated costs. The results will require utilities and their suppliers to develop new business models, strategies, and processes.

With an emphasis on reducing costs and improving...