Q: Why have utilities historically struggled with innovation, and how is PGE changing this dynamic?

Larry Bekkedahl: Here's the challenge: Utilities operate on infrastructure designed 150 years ago. When you're responsible for keeping the lights on for everyone, you can't experiment on live systems. One failed test could mean outages for thousands or skyrocketing costs. That obligation has made our industry conservative about new technologies.

But caution was becoming a liability, so we built a structured innovation process that lets us test new ideas without compromising reliability. Think of it as a sandbox where we can play with technologies before they touch the grid. This helps us quickly identify which solutions work while maintaining reliability.

Q: How did PGE turn its innovation program around to become an industry leader?

Larry Bekkedahl: Three years ago, EPRI ranked us last among major utilities for innovation. That wake-up call catalyzed transformation. We studied Portland tech companies, brought in experts and reimagined how innovation could work in our industry.

The breakthrough came from building psychological safety. Employees now have a pathway to bring ideas forward, knowing they'll get fair evaluation — even if the answer is no.

Through this process, we’ve dramatically increased our innovation capacity. In fact, our innovation portfolio grew 343% in just 18 months and we are now considered an innovation leader by EPRI.

Q: In your recently released 2024 Innovation Impact Report, you note that you've sped up innovation decisions by 62% and reduced costs by $563,000 per evaluation. How did you do that?

Larry Bekkedahl: We made three changes. First, we borrowed from aviation with our "airport analogy" process. Ideas taxi in the hangar for evaluation, take test flights, then either land successfully or get grounded. The journey takes 90 days, giving vendors clarity fast.

Second, we killed the runaround. Before, startups would bounce between departments, pitching to multiple people. Now our innovation office serves as air traffic control — one entry point, clear flight paths and coordination across departments. When cybersecurity raises a flag, we address it immediately.

Last, we eliminated redundancy. Previously, multiple departments spent weeks evaluating the same solution independently. Now we coordinate reviews. Subject matter experts who took weeks to provide input now provide it in hours. That efficiency saves $563,000 per evaluation.

Q: AI is both a tool for grid optimization and a major source of new electricity demand. How is PGE navigating this tension as it plans for the future?

Larry Bekkedahl: This paradox keeps utility executives up at night. AI promises to revolutionize grid management, but here's the catch: AI searches consume 10 times more electricity than regular web queries. By 2030, data centers could devour 9% of America's electricity, more than double today's 4%.

To prepare for this, PGE is developing flexible load programs. Through EPRI's DCFlex initiative, we're implementing agreements where data centers can dial back operations for three-hour windows when the grid needs breathing room. It's like a pressure release valve for peak demand. This flexibility lets us improve system use and serve more customers without costly infrastructure upgrades.

But grid capacity remains a critical challenge. To put this in perspective, PGE’s grid capacity peaks at 4.5 GW and we already have 3 GW of new load requests in the queue. With U.S. data center capacity expected to continue to surge, utilities have to plan strategically, recognizing that AI is both part of the challenge and the solution.

Q: With exploding data center demand and ambitious decarbonization goals, can Oregon hit its 80% emissions reduction target by 2030?

Larry Bekkedahl: Unfortunately, no — not at the current pace. We're seeing explosive demand from data centers and AI while trying to electrify transportation and buildings.

Transmission is our biggest bottleneck. We're squeezing every megawatt from existing infrastructure through reconductoring and voltage upgrades rather than building new lines. But even with these efforts, we need fundamental acceleration. The clean energy transition isn't failing — it's just happening alongside unprecedented demand growth.

Q: With wildfire risk up 500-900% in some of your service areas, what technologies are essential for grid resilience?

Larry Bekkedahl: There’s no silver bullet when fire risk increases tenfold. It demands a full-spectrum response. We’ve deployed detection devices to spot equipment problems before they spark. We also use satellite and LiDAR technology to monitor 2.5 million trees along our lines for risks. Additionally, we use Pano AI cameras for early fire detection — they detected the Camp Creek Fire over four hours before traditional methods.

The key is making the data actionable. If vegetation management teams can't access or understand data, it's useless. We built AI-powered dashboards that help field crews prioritize critical work. This shifts us from reactive to proactive maintenance.

Q: Final advice for startups looking to partner with utilities?

Larry Bekkedahl: Keep coming. The utility industry needs innovation. But come ready to collaborate, not conquer. Don't pitch your solution as the silver bullet — show how you can work within our constraints while pushing us forward.

Be prepared for our process, but know we've designed it for fast answers. If we say no, you'll know quickly. If we say yes, you're working with a partner committed to scaling your solution.

The future depends on utilities and startups working together. Keep innovating and knocking on our door. The challenges are too big to solve alone.