Source: Wikipedia.

The utility sector is in the throes of disruption as distributed power generation challenges the tradition utility model. With increased power generation coming from nontraditional sources like rooftop solar, utilities could end up on the short end if revenues do not cover already sunk generation and grid investments. However, two long-term-minded utilities like NRG Energy (NYSE:NRG) and American Electric Power (NYSE:AEP) are making substantial changes to their business model that will enable both companies to focus on customer needs and build a framework to adapt to new technologies. 

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This segment is from Wednesday's edition of "Digging for Value," in which sector analysts Joel South and Taylor Muckerman discuss energy and materials news with host Alison Southwick. The twice-weekly show can be viewed on Tuesdays and Thursdays. It can also be found on Twitter, along with our extended coverage of the energy and materials sectors @TMFEnergy.

Joel South and Taylor Muckerman have no position in any stocks mentioned, and neither does The Motley Fool. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.