The grid is old. The workforce is retiring. And AI pilots keep stalling at 71%.
You're running a $200M regional utility with 10-20 people in IT, SCADA systems that predate Google, and NERC CIP auditors asking for evidence you can't produce without pulling three engineers off other work. Accenture quoted you $15M for ADMS. The platform vendors want an 18-month implementation for a CIS you're not even sure you need. You need someone who builds working software inside the constraints you actually operate in, not another vendor promising a three-year transformation.
ASCE gave U.S. energy infrastructure a D+ in 2025, calling it a $5 trillion problem. 70% of power transformers are over 25 years old. And data center electricity demand alone could reach 9-17% of national consumption by 2030. The infrastructure challenge is massive, but the technology challenge is where mid-market utilities feel it most: too few IT resources, too many legacy systems, and a compliance burden that scales regardless of company size.
Five problems keeping energy CTOs and operations directors up at night.
These are the specific, real-world challenges energy technology leaders and operations directors face every week. Each one maps directly to our core capabilities: application development, data engineering, applied AI, and fractional technology leadership.
Wildfire risk management & emergency communications platforms
PG&E filed for bankruptcy after wildfires caused over 100 deaths and $25.5 billion in settlements. California regulators approved $27 billion in wildfire prevention cost recovery across the state's major IOUs. Wildfire-related costs now represent 10-24% of total revenue requirements for California's investor-owned utilities. This isn't a California-only problem anymore; wildfire mitigation plans are spreading to other states, and the regulatory requirements keep expanding.
We built the solution for this exact problem at SDG&E. Their legacy VESTA notification system could only message 5,000 customers at a time. The notification process was a 37-step sequence that lived in one employee's head. Reporting was manual. We built a microservices architecture of five independent applications integrated with eight existing services, reduced the process from 37 steps to 10, and enabled SDG&E to notify 150,000+ customers in a single activation with three clicks. In 2022, SDG&E's closest competitor was fined 417 times the amounts SDG&E faced.
Mid-market utilities need platforms that connect weather data, vegetation intelligence, customer notification, PSPS execution, and regulatory reporting into a coherent workflow. Most are still running disconnected tools and manual processes. This is a problem with a proven solution, deployed at production scale for a major IOU.
SCADA/OT and enterprise IT convergence
The air gap between your operational technology and enterprise IT is largely gone, but most utilities haven't built the bridge properly. SCADA systems use industrial protocols (Modbus, DNP3, and IEC 61850) that were never designed for analytics. Your ERP, CRM, and billing systems hold financial and customer data in completely separate architectures. For a $200M regional utility, this means operational data about grid conditions, equipment health, and field crew activity is invisible to the business systems that drive decisions.
The urgency is coming from two directions at once. Cybersecurity: the China-linked Volt Typhoon group has been confirmed conducting long-term intrusions into U.S. energy infrastructure, and NERC CIP-015-1 now mandates internal network security monitoring across previously exempted systems. And AI readiness: 68% of energy executives cite legacy OT systems as their primary barrier to AI deployment. Energy companies spend 65% of their AI project budgets on data engineering alone, nearly three times the cross-industry average.
The technology solution involves secure DMZ architectures, real-time data ingestion pipelines from SCADA and historian systems, edge computing for latency-sensitive applications, and network segmentation that doesn't break operational workflows. The right approach is building the integration layer, not buying the $15M ADMS platform your utility can't absorb.
Regulatory compliance at scale without enterprise-scale budgets
NERC CIP compliance is growing in both scope and complexity, and the compliance burden scales the same regardless of utility size. That creates a disproportionate "compliance tax" on mid-market companies. Violations trigger fines up to $1 million per day per violation. The 2025 CIP updates reclassify historically "low-impact" assets to stricter security controls. CIP-015-2, due June 2026, will expand continuous monitoring requirements further. FERC's FY2025 audits found persistent gaps around DER categorization, third-party vendor risks, and cloud services.
Beyond NERC CIP, state PUC reporting is becoming more data-intensive: rate case preparation, integrated resource planning, wildfire mitigation plan filings, and customer service quality metrics all require pulling data from disparate operational systems. For a utility operating across multiple regulatory jurisdictions (common in multi-state energy companies), the complexity multiplies fast. Enterprise solutions like ServiceNow or Industrial Defender can be over-engineered and overpriced for this segment.
The answer is a compliance management platform with automated evidence collection, continuous monitoring tools, and unified documentation systems, right-sized for the $200M utility that doesn't need a $2M compliance platform but can't keep handling audits with spreadsheets and email attachments.
Post-acquisition technology integration for energy services companies
When an acquirer targets a $200M energy services company, usually through a roll-up of smaller acquisitions, they inherit a patchwork of disconnected systems. Each add-on brings a different ERP, CRM, field service tool, billing system, and safety tracking method. The ENTRUST/EN Engineering story illustrates this perfectly: Kohlberg built the platform through 10 strategic add-on acquisitions in utility engineering services before selling to Leidos for $2.4 billion. Integrating 3,100 employees' legacy systems was a defining challenge of the hold period.
Post-acquisition, leadership mandates standardized reporting within 90 days. That requires extracting data from systems that were never designed to talk to each other. The immediate needs are operational visibility dashboards (real-time EBITDA tracking, capacity utilization, and safety and compliance metrics), field services platform consolidation (incompatible dispatch systems, work order formats, and technician certification tracking), and fleet management across what might be 200-2,000+ vehicles. Fleet optimization alone typically yields 10-15% cost reduction through better utilization and preventive maintenance.
The Technical Due Diligence assessment is the starting point. It finds the expensive technology surprises before they become your post-close problem. From there, the work is integration layers and data platforms that make consolidation possible on your timeline.
Demand forecasting in a world of volatile, concentrated new loads
Traditional load forecasting models built on population growth and weather patterns are breaking down. EVs, heat pumps, data centers, and behind-the-meter solar create demand patterns that are concentrated, volatile, and faster than regulatory or investment processes can adapt. A single large data center consumes as much power as roughly 80,000 homes. The DOE projects 30-42 million plug-in EVs on U.S. roads by 2030, adding an estimated 100-185 TWh to national electricity demand.
For a mid-market utility, the problem isn't "better algorithms." AI-driven forecasting tools can reduce forecast errors by 20-50%. The problem is that the inputs are changing faster than models can be retrained. Over-forecasting means overbuilding and higher customer costs. Under-forecasting threatens reliability. Georgia Power saw expected large load additions decrease by 6 GW between Q2 and Q3 2025 as projects exited its interconnection pipeline, showing just how unpredictable these new loads are.
The technology solution involves AI/ML forecasting platforms that incorporate real-time AMI data, weather APIs, EV charging patterns, DER generation profiles, and economic indicators. But it also requires scenario-based modeling with probability ranges instead of point forecasts, which is a fundamental shift from how most utilities plan. That data infrastructure is the foundation everything else depends on.
Great fit
- Regulated utilities needing modern customer communication platforms
- Field operations running on disconnected legacy systems
- Energy companies with grid data trapped in siloed SCADA systems
- Utilities preparing infrastructure data for AI-driven optimization
Not the right fit
- Looking for SCADA vendor selection or utility billing implementation
- Need rate case consulting or regulatory strategy without technology
- Single-fuel utilities with simple customer bases
- Companies needing only meter data management software
Energy companies spend 65% of AI budgets on data engineering. That's our core business.
Only 24% of utility, power, and renewable energy companies have achieved meaningful AI maturity. The bottleneck is not algorithms. It's data engineering and organizational readiness. BCG found successful AI integration requires 10% investment in algorithms, 20% in data and technology, and 70% in people, processes, and culture. Energy companies consistently under-invest in that 70%. We don't sell "AI strategy." We build the data foundation, connect the systems, and deploy proven models against specific operational problems.
Transformer failure reduction
C3 AI monitored 10,000 transformers and 22,000 circuit breakers for a major U.S. utility. $800K annual O&M savings, over $40M in economic value over 15 months. The ROI is real when the data foundation exists.
Vegetation review time cut
AI-powered vegetation management is the breakout application in utilities. Overstory serves 6 of the 10 largest utilities, assessing conditions tree by tree from satellite data. Technosylva runs 1 billion daily wildfire risk simulations.
Customer interactions automated
Duke Energy's AI chatbot handled 280,000+ interactions in its first three months. Reduced manual feedback submissions by 90%. The lowest-risk entry point for utilities starting their AI journey, if the CIS integration is done right.
Annual value from grid AI
National Grid invested $45M in grid AI and estimates $340M in annual expected value from AI-prevented grid incidents. A large southern U.S. utility deployed 400+ AI models across 67 generation units, achieving $60M in annual savings.
307 power and energy deals last year. Most inherit a technology mess.
PE activity in energy is accelerating. Midstream deal volume hit a five-year high. Blackstone acquired TXNM Energy for $11.5 billion. KKR established a $50 billion partnership with Energy Capital Partners for data center power. When PE buys an energy services company, the technology work follows a predictable pattern, and we've built the playbook for it. Every engagement maps back to value creation metrics your operating partner cares about.
Post-acquisition operational visibility
EBITDA tracking, revenue per asset, operating costs by unit, and safety and compliance metrics. Most $200M energy services companies run fragmented systems. We build the data layer and reporting infrastructure your operating partner needs within the first sprint.
Fleet and field services savings
Fleet optimization through consolidation, utilization tracking, and preventive maintenance. Field services platform consolidation across acquired entities with incompatible dispatch, work order, and certification systems. Quick wins that improve margins during the hold period.
Median TEV/EBITDA in energy deals
At these multiples, every point of EBITDA improvement matters. We identify the highest-ROI technology investments in your portfolio companies: predictive maintenance, compliance automation, and data consolidation. Measurable baselines so you can prove the return.
Technical due diligence
Pre-close technology assessment for energy acquisitions. SCADA/OT architecture, cybersecurity posture, regulatory compliance readiness, integration complexity, and data quality. The findings that should inform your valuation. 1-2 weeks, clear deliverable.
Not sure where to begin? Neither were the teams running 30-year-old SCADA.
Our assessment offerings are designed to be easy to say yes to: fixed scope, fixed price, short timeline, and tangible deliverable. Most of our platform engagements start with one of these. Some clients take the roadmap and run with it internally. Most ask us to keep building.
Start with a Data Readiness AssessmentProduct Design Sprint
Turn a business idea or known operational problem into a validated product concept. User research, rapid prototyping, technical feasibility, and a buildable specification for grid management tools, field apps, or customer portals.
Data Readiness Assessment
Audit your data architecture across OT and IT systems, map integration gaps between SCADA, historian, EAM, and enterprise systems, and produce a prioritized modernization roadmap with AI readiness scoring.
AI Opportunity Assessment
3-5 high-impact AI use cases for your specific energy operation. Predictive maintenance, vegetation management, demand forecasting, and outage detection. Feasibility analysis and ROI projections included.
Technical Due Diligence
Pre-acquisition or internal technology assessment. SCADA/OT architecture, cybersecurity posture, NERC CIP compliance readiness, integration complexity, data quality, and team capability. The findings that should inform your next move.