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Powered by Marsh FINPRO: How one Arizona utility is navigating the energy transition

Powered by Marsh FINPRO podcast episode 4 with John Draftz on utility risks, clean energy, and impact of data centers on energy consumption.

Utilities are navigating a transformative energy landscape as they adapt to the demands of the energy transition. With increasing pressure to meet future electricity needs, organizations like Arizona Public Service (APS) are at the forefront of this shift, facing unique challenges that require innovative solutions.

In this episode of Powered by Marsh FINPRO, host Grace Brighter engages with John Draftz, Director of Risk Insurance Claims at APS, to explore the critical role of utilities in the energy transition. They discuss the complexities of managing risk in a rapidly changing environment, the impact of renewable energy sources, and the importance of transparency in addressing emerging threats such as wildfires and cyber risks.

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Key takeaways

Utilities must navigate the energy transition wisely

As demand for clean energy increases, utilities must modernize their infrastructure and diversify their energy portfolios to mitigate risks associated with extreme weather and supply chain vulnerabilities.

Proactive risk management and communication wins the day

Effective risk management strategies are essential for utilities facing challenges, such as wildfire risks and cyber threats, and opening lines of communication with local communities is critical for building trust and ensuring regulatory compliance.

Data center growth will impact utility operations

The growing demand from data centers presents both opportunities and challenges for utilities, including the need to balance significant investments with cost equity for residential customers.

Podcast

Powered by Marsh FINPRO podcast series

Learn more about our podcast series that examines the opportunities and challenges in the energy and power industry due to the energy transition and how to manage the resulting management liability risks.

About our speakers

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Grace Brighter

Assistant Vice President

  • United States

Grace Brighter is an Assistant Vice President within Marsh’s FINPRO Placement Team. She is responsible for working with insurance carriers and negotiating competitive coverage for her clients.

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Sarah Baldys

Senior Vice President, FINPRO Power & Renewables Leader

  • United States

Sarah is a Senior Vice President at Marsh where she leads a national team of FINPRO colleagues with specialized expertise in the Energy and Power sector.

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John Draftz

Director, Risk/Insurance/Claims, Arizona Public Service

  • United States

John Draftz is responsible for appropriately managing risk transfer and claims handling for Arizona's largest electric utility, Arizona Public Service, including the Palo Verde Nuclear Generating Station.