In its current state, due to years of chronic underinvestment, the U.S. power grid creates a plethora of risks for insurers and other stakeholders.
The American Society of Civil Engineers (ASCE) gave the nation’s energy system a C- grade three years ago in its latest Report Card for America’s Infrastructure. (That was up from a D+ in the previous report.) Among its challenges, according to the organization, are: aging infrastructure that requires repair or replacement; growing electricity demand that is outpacing supply; cyberattacks that could easily disrupt power supplies for millions of customers, wreaking havoc on the broader economy; and damage and power outages from extreme weather events, such as hurricanes and wildfires.
When the grid cannot deliver electrons, for whatever reason, the results can be dire. Texas’s experience during winter storm Uri in February 2021 illustrates this. Nearly 250 people died during days of subfreezing temperatures am
