ABSTRACT
The utility sector contributes to the long-term economic development of a nation and to the well-being of its people. The utility industry generally supplies goods or services that are essential, such as water, electricity, telephone, natural gas, and sewage removal (Bureau of Labor Statistics, n.d.). The industry faces a number of fundamental changes that are transforming the industry landscape, such as changing customer demands, technology, regulatory changes, and market forces (Delmas, Russo, & Montes-Sancho, 2007; Fox-Penner, 2009). The utility industry is also impacted by various other factors. For instance, the location and amount of utilities desired by the customers, geography, resource availability, and the political scenarios (Fehrer, Young, & Zeren, 1984). The global utility industry has experienced mixed outcomes in terms of revenue generation. As indicated by a study by the Utilities Industry Profile: the United States (2014), there has been a decline in terms of revenues for the US utility industry in recent years, whereas there has been growth in the utility industry of Europe and the Asia Pacific. For instance, total revenue generated by the US utility industry was $688.5 billion in 2012. The compound annual rate of change (CARC) in the United States from 2008 to 2012 was -2.4% (Utilities Industry Profile: the United States, 2014); however, total revenues for Europe and the Asia Pacific during the same timeframe was $998.8 billion and $1212.5 billion, respectively (Utilities Industry Profile: the United States, 2014).
