E3, a Willdan Company, Publishes Study for Amazon on Rate Design to Manage Large Electric Load Growth

Key Terms

rate design technical

Rate design is the way a regulated service’s prices are structured — how customers are charged through fixed fees, per-unit usage charges, time-based rates, demand charges or discounts. It matters to investors because the chosen structure shapes a company’s revenue stability, how quickly it recovers costs for infrastructure, and customer behavior (for example, whether people cut use to lower bills), all of which influence future earnings and regulatory risk.

cross-subsidization financial

Cross-subsidization is when a company uses profits, cash flow, or resources from one product, service, region, or business unit to support another that is losing money or priced lower. Think of it like one checkout lane covering discounts at another; it can help a new or strategic area grow but also mask the true performance and risks of individual parts. Investors care because it can distort profitability, hide unsustainable pricing or losses, and affect future cash flow and valuation.

self-supply of generation technical

Self-supply of generation means a company produces its own electricity or power for use on-site instead of buying it from the public grid. Like a bakery that bakes its own bread rather than buying loaves, self-supply can reduce ongoing costs, protect operations from outages, and change capital spending and regulatory exposure — all factors that can affect profit margins, cash flow and investment risk.

load growth technical

Load growth is the rise in demand for a company’s product or service that is measured by the amount of capacity used—most commonly seen as higher electricity or data usage by customers. For investors it signals stronger revenue potential, possible need for more capital spending to meet demand, and changes in operating costs, like a shop getting steadily more foot traffic which can boost sales but also require more staff or space.

ANAHEIM, Calif.--(BUSINESS WIRE)-- Willdan Group, Inc. (NASDAQ: WLDN) announced today that it has released an independent study for Amazon, evaluating rate design to manage large electric load growth. The study examines how new large energy users, such as data centers, affect utilities and their customers, especially with growing demand from artificial intelligence (AI). The study provides practical guidance for regulators and energy providers as they plan for continued growth.

Energy + Environmental Economics (E3), Willdan’s wholly owned subsidiary, conducted this study and provided several key findings:

• The Amazon data centers included in the study generate sufficient or surplus revenues relative to the utility’s cost of service, demonstrating other ratepayers are not subsidizing the data centers’ costs.
• Given the rapid and dynamic nature of load growth, the paper identifies tools that utilities and their regulators can use to maintain these equitable outcomes and prevent future cross-subsidization.
• New rate design tools and power supply approaches are increasingly being used to manage large load growth at scale, such as self-supply of generation and signing long-term contracts for emerging clean energy technologies.

“We appreciate this opportunity to support Amazon and other large energy customers as they navigate an energy landscape increasingly shaped by AI, digitalization, transportation electrification, and reshoring of manufacturing,” said Mike Bieber, Willdan’s CEO. “This study provides critical guidance for utilities seeking to manage rapid load growth and economic development while keeping rates affordable.”

E3’s analysis builds on decades of experience advising utilities, policymakers, and large energy consumers on electricity system planning, rate design, and the integration of clean energy. The full study, including E3’s findings and recommendations, can be found here.

About Willdan

Willdan is a nationwide provider of professional, technical, and consulting services to utilities, government agencies, and private industry. Willdan’s service offerings span a broad set of complementary disciplines that include electric grid solutions, energy efficiency and sustainability, energy policy planning and advisory, engineering and planning, and municipal financial consulting. For additional information, visit Willdan's website at www.willdan.com or follow Willdan on LinkedIn and Facebook.

Forward-Looking Statements

Statements in this press release that are not purely historical are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. It is important to note that Willdan’s actual results could differ materially from those in any such forward-looking statements. Factors that could cause actual results to differ materially include, but are not limited to, the risk factors listed from time to time in Willdan’s reports filed with the Securities and Exchange Commission, including, but not limited to, the Annual Report on Form 10-K filed for the year ended December 27, 2024. Willdan cautions investors not to place undue reliance on the forward-looking statements contained in this press release. Willdan disclaims any obligation to, and does not undertake to, update or revise any forward-looking statements in this press release.

View source version on businesswire.com: https://www.businesswire.com/news/home/20251216062393/en/

Al Kaschalk

Vice President

310-922-5643

akaschalk@willdan.com

Source: Willdan Group, Inc.