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A central objective of utility grid modernization plans is to demonstrate that investments will provide net benefits to utility customers. The plans typically include some form of benefit-cost analysis (BCA) to determine whether projected benefits of grid modernization investments exceed estimated costs. For jurisdictional utilities, grid modernization plans pose some new and complex challenges for state public utility commissions in determining whether projects will provide net benefits to customers. Plans typically include multiple grid modernization components that have interactive effects and are difficult to analyze or justify separately. Many benefits are hard to quantify or monetize, making it difficult to compare all benefits and costs. Part of the rationale for some grid modernization investments is to meet state energy goals, which can be difficult to quantify and account for in BCA. Equity issues arise when investments may benefit some types of customers more than others. This report provides state public utility commissions, energy offices, utility consumer representatives, and other stakeholders with a framework for navigating BCA for utility grid modernization plans and for supporting training for these audiences on this topic. It does not attempt to explain all the complexities and details of how to prepare BCA for grid modernization plans. Instead, it presents trends, challenges, and considerations for reviewing plans. Trends in Recent Grid Modernization Plans We reviewed 21 recent utility grid modernization plans and found a wide variety in assumptions, methodologies, justifications, and documentation for BCA. Many of the plans did not include all information or analysis needed for a thorough regulatory review of grid modernization projects. Following are some of the key items that were lacking in the plans:

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