Utilities today, for the most part, continue to set rates and revenue, and recover costs the way they have for more than a hundred years. The traditional vertically integrated utility business model has utilities owning and operating large central‐station power plants, moving power over high‐voltage transmission lines to the distribution grid through substations, and delivering one‐way power to residents, businesses, and industry. Whether utilities own generation directly or not, revenue requirements are determined by regulators in a similar manner based on cost of service. Revenue models, and the method for compensating utilities, are straightforward. Utilities receive an agreed‐upon financial return on assets and are allowed full recovery of investments deemed prudent by regulators, with related operating expenses and fuel costs being passed through to customers.