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AI “Will Have a Significant Impact on Energy Industry,” EPRI Tells Congress

EPRI’s 2023 testimony described possible AI uses in utility operations—from wildfire detection to storm recovery—while stressing that benefits were uncertain and implementation risks were real.
From TheFinanceBase Team4 min to read

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AI could materially change how electric utilities operate, but EPRI’s October 19, 2023 congressional testimony presented possible benefits and risks—not proof that those benefits have already occurred. The testimony focused on utility operations such as asset management, wildfire response, storm recovery and energy-use optimization.

What EPRI told Congress about AI and energy

Jeremy Renshaw, an Electric Power Research Institute (EPRI) senior technical executive, told the U.S. House Energy and Commerce Subcommittee on Energy, Climate, and Grid Security on October 19, 2023: “Clearly, AI will have a significant impact on the energy industry, likely both positive and negative.”

EPRI framed AI as one tool that could support an affordable, reliable transition to cleaner energy. Its testimony described anticipated outcomes involving safety, affordability, reliability, efficiency and environmentally friendly energy production. It did not quantify those outcomes or claim that they had been achieved.

How could AI affect electric utilities?

The examples in EPRI’s testimony concern company and utility operations rather than consumer-facing AI products.

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Improving existing-asset efficiency

Models could analyze operating data from power-sector equipment and help identify inefficient performance or maintenance needs. Better analysis might help operators use existing assets more effectively, but the testimony supplied no measured savings, reliability improvement or deployment result.

Evaluating wildfire risk and detecting fires early

AI could support wildfire-risk evaluation and early-stage detection. Earlier or more precise alerts could give utilities and emergency personnel additional time to inspect infrastructure and respond. EPRI did not report a quantified improvement in detection, response time or avoided damage.

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Managing vegetation around infrastructure

Utilities could use AI to assess vegetation conditions near lines and other equipment, helping prioritize inspection or clearance work. The testimony did not establish how accurately such systems perform or how much they reduce outages.

Supporting storm recovery

After severe weather, AI could help utilities analyze incoming information, prioritize field work and coordinate restoration. These were proposed applications, not evidence of a particular restoration-time reduction.

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Optimizing energy use

AI could help analyze demand and operating conditions to optimize energy use across utility systems. EPRI presented this as a potential efficiency and affordability benefit, without providing a measured effect on bills, demand or emissions.

What evidence did EPRI cite about adoption?

EPRI said it had been involved in more than 70 AI application projects in the energy sector as of October 19, 2023. That is EPRI’s reported figure on that date, not an independently audited current project count. The testimony and announcement do not establish how many projects reached production, their costs or their results.

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What risks and implementation problems did EPRI identify?

Privacy and data security

AI systems may use operational, customer or other sensitive information. EPRI said organizations need to address privacy and security of the data used by models before relying on their outputs.

Cybersecurity threats and defenses

AI can support cybersecurity work, but it can also create new attack opportunities. Utilities therefore need to consider both AI-assisted defenses and threats against AI systems, their data and their surrounding infrastructure.

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  • INSTALLS IN CIRCUIT PANEL of most homes with clamp-on sensors. Supports Single phase, Single-split phase, and 2-wire systems. 3-wire systems; 3-phase, 4-wire Wye systems with earthed (TN or TT) neutral (no-Delta) are supported with an additional 200A sensor (sold separately).
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Insufficient or poor-quality data

A model cannot compensate for missing, inaccurate or unrepresentative data. EPRI warned that deficient data can produce erroneous results that then influence operational decisions.

Workforce training and judgment

Workers need training to recognize when AI is appropriate, interpret its outputs and identify situations requiring human judgment. Automation does not remove responsibility for checking a recommendation before acting on it.

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How should utilities build confidence in an AI system?

Renshaw’s testimony pointed to controls and testing, robust datasets and explainability as elements of responsible deployment. In practical terms, a utility evaluating a model should ask:

  • What decision will the model support, and what happens if its output is wrong?
  • Are the training and operational datasets sufficient, accurate and representative of the conditions the utility will encounter?
  • What privacy, access-control and cybersecurity protections cover the data, model and connected systems?
  • Can operators understand why the model produced a recommendation and override it when necessary?
  • What testing, monitoring and change controls will detect performance degradation after deployment?

Comparing the use cases EPRI described

Use case Operational purpose Data and safeguards to consider What the testimony establishes
Asset efficiency Find inefficient operation or maintenance needs Equipment and operating data; data quality, testing and explainability Potential application only; no quantified outcome
Wildfire risk and early detection Assess risk and identify fires sooner Environmental and infrastructure data; privacy, security and false-alert controls Potential application only; no reported detection or damage metric
Vegetation management Prioritize inspection and clearance near infrastructure Geographic, vegetation and line data; accuracy testing and worker review Potential application only; no outage or cost result
Storm recovery Prioritize restoration and coordinate response Outage, damage and field reports; resilient systems and human oversight Potential application only; no restoration-time result
Energy-use optimization Improve operational efficiency and manage demand Load and system data; security, privacy and explainable recommendations Potential application only; no measured bill, demand or emissions effect

What this means for households and energy affordability

EPRI connected AI’s potential to affordability, reliability and efficiency, which are ultimately relevant to electricity customers. However, the October 2023 materials do not show that AI had lowered consumer bills, reduced outages or changed rates. Household effects would depend on how utilities deploy systems, the costs of implementation, regulatory treatment and whether operational gains are passed through to customers.

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What the testimony does—and does not—show

  • It shows that EPRI viewed AI as capable of having a major effect on the energy industry, with positive and negative consequences.
  • It identifies concrete utility applications: asset efficiency, wildfire evaluation and detection, vegetation management, storm recovery and energy-use optimization.
  • It identifies privacy, cybersecurity, data quality and workforce preparation as central implementation concerns.
  • It does not establish present-day deployment totals, realized savings, outage reductions, emissions reductions or consumer-bill effects.

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