Regulated utilities and their customers are facing an unprecedented array of economic, social and environmental challenges. Issues such as climate change, a slumping economy, spiking energy prices, aging infrastructure, and an ever-expanding e-savvy population will drive a transformation in how utilities and their customers interact. New technologies will offer both utilities and their customers more flexibility and choice in responding to these challenges-but at a cost. Distributed generation, smart appliances, advanced two-way meters, an intelligent grid - all great technological advances that promise robust societal and environmental benefits - but can every customer class afford to pay for those innovations right now? Alternatively, can regulators and utilities afford not to act and still keep the lights on? For the Utility of the Future, as well as the Customer of the Future, regulatory policies set today will define how technology can help meet our Nation's pressing resource challenges tomorrow.