In reference to the way changing market conditions look set to strand large scale generating assets decades before their owners (and regulators) originally planned. You can see the shortfall that is threatened as the decommissioning funds of the nuclear plants are intended to mature on a schedule coinciding with the plants scheduled life.
From NRG Doubles Down on Distributed Generation
Enter the Utility Death Spiral
To be clear, NRG has flourished under David Cranes leadership, its stock price nearly doubling in the past year alone. So why would Crane rock the boat, as he just has? The plan that Crane has put forward seemingly contradicts NRGs current formula for success, and it threatens to alienate others in the industry, to boot. This is a serious challenge to the status quo.
One theory would be that Crane sees the writing on the wall: distributed renewables are forcing centralized fossil-fueled generation to go the way of the dinosaur, opening the door for customers to manage and meet their electricity needs with increased independence. Granted, at todays pace its going to be a while before the electricity industry is no longer dependent on coal and nuclear, but Crane seems to be positioning NRG to get in front of the curve by establishing itself as the go-to provider of islandable micropower. Sun Tzu said: though we have heard of stupid haste in war, cleverness has never been associated with long delays. Crane would seem to have taken this to heart.
Should the electric utility industry be worried? At a time when utilities business customer satisfaction is already falling, the answer is an unequivocal Yes. If NRG steps in and takes people off the grid, there are suddenly fewer customers remaining to pay for the infrastructure needed to make the system work (the same infrastructure thats needed to bring renewables like Wyomings wind power to major load centers across the country). As a result, a utility would have to distribute these fixed costs over fewer customers, raising prices for individual customers and driving even more people to think about switching over to NRG and other options that may emerge. This phenomenon results in a positive feedback loop termed the utility death spiral. Investor-owned utilities are taking notice, as this death spiral could result in a cycle that continues shifting customers away from the utility until theres nobody left.
NRGs plan hinges on a belief that if a utility cant prove that it offers more value to its customers, those customers will leavekicking off the aforementioned death spiral. Its for this reason that Crane believes that utilities think distributed solar is a mortal threat to their business. But does this have to be the case?
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http://blog.rmi.org/blog_2013_04_11_NRG_Doubles_Down_on_Distributed_Generation