In this episode of the T&D World Live podcast, we speak with Chris Campbell, senior director of OT services for Salt River Project (SRP), about the technology, operational and resource challenges facing utilities as the electric grid undergoes rapid transformation.

Recorded at the Aspen Tech Conference, the conversation begins with some of the major issues being discussed by utility professionals, including unprecedented system growth driven by data centers and advanced manufacturing, the transition toward lower-carbon energy portfolios and the increasing complexity of grid operations. Campbell explains that distributed energy resources, customer generation and electrification are creating greater variability on both the supply and demand sides of the system, making real-time grid balancing more challenging.

Campbell also discusses SRP’s approach to wildfire mitigation and the role of operational technology in managing risk. The utility uses risk assessments to determine when operating practices need to change, including adjustments to automatic reclosing. Under higher-risk conditions, SRP can implement public safety shutoffs to reduce the potential for ignition, although Campbell notes the customer impacts associated with those decisions.

The discussion then turns to SRP’s changing energy portfolio and projects such as the Marigold Energy Center, which combines natural gas, solar, batteries, transmission infrastructure and a substation. Campbell explains that SRP is balancing the need for renewable resources and energy storage with the need for firm, dispatchable energy. Batteries can help shift solar generation to periods of peak demand, but Campbell says a diverse portfolio is necessary to meet the system’s needs.

A significant portion of the conversation focuses on how SRP’s operational technology strategy has evolved. Campbell describes OT as the technology used to control real-time system operations and explains that it has become increasingly integrated and complex. As a result, SRP has moved from what Campbell describes as a more fragmented and reactive approach toward one that is more integrated, aligned and strategic. He also discusses IT-OT convergence and the need to combine the strengths of both areas as technology becomes more interconnected and widely available.

Artificial intelligence is another major topic. Campbell says SRP is assessing potential AI use cases to determine where the technology could provide the greatest value and impact. In the OT environment, potential applications include operational decision support, making documented operating procedures more accessible to operators and helping manage the large volume of data and alarms entering operation centers. AI could potentially help identify root causes and direct operators' attention to the most important issues.

At the same time, Campbell emphasizes that utilities must be cautious about applying AI to critical real-time operations. He says more experience is needed to validate AI responses and address concerns such as hallucinations. Because many OT applications involve highly deterministic, physics-based systems, SRP is not yet prepared to turn control functions over to AI. Campbell says utilities will need a clear understanding of how AI is being used, how it is validated and whether the technology has reached an appropriate level of maturity and reliability.

The interview also examines how operational data can support asset management and maintenance decisions. Data generated through real-time operations can feed asset management programs and predictive analytics, helping identify potential failures and determine where maintenance resources should be directed. Campbell points to underground cable as one example, explaining that SRP invests more than $40 million annually replacing underground cable and uses operational data to help prioritize those investments.

Campbell also discusses SRP’s experience with underground infrastructure. The utility was an early adopter of undergrounding, installing significant amounts of direct-buried cable from the 1960s through the 1990s. After determining that the failure rates associated with that approach were higher, SRP switched to conduit. The utility is now working to replace older underground cable, a process Campbell describes as difficult but important.

As electricity demand continues to grow, Campbell explains how OT and related systems can support planning and operations. Increasing amounts of solar, wind and battery storage are connected to the grid through inverter-based resources, which operate differently from traditional generators with rotating mass. These changes require different approaches to system operation and increase the importance of situational awareness. Energy storage also creates additional operational complexity because it can function as a load, a source of energy or provide ancillary services such as frequency control.

Communications infrastructure is another important part of SRP’s technology strategy. Campbell describes how the utility began deploying fiber optic cable on its transmission system in the 1990s. That network now provides reliable, high-bandwidth communications across much of SRP’s system. The utility has also been deploying wireless networks to support grid automation and is evaluating the potential use of a private LTE network. Campbell says such a network could provide resilient communications to support a range of utility applications.

The conversation also addresses the cost of technology and the challenge of maintaining affordability. Campbell acknowledges that expanding technology infrastructure adds costs, while also explaining that technology can improve efficiency, optimize energy resources and reduce operating costs. The challenge for utilities is balancing affordability with reliability and sustainability. Campbell describes these priorities as competing at times and says SRP works to understand how customers value each of them and how much they are willing to trade one for another.

SRP’s integrated planning approach is another part of that balancing act. Campbell explains that the utility considers distribution, customer programs, transmission and generation together rather than looking only at individual portions of the system. Technology, he says, can help enable greater efficiency, optimize existing resources, support the energy transition and give customers tools to participate more actively in the changing grid.

The discussion also looks at the challenges of operating an electric system in Arizona’s extreme heat. Campbell describes summer preparation as a major part of SRP’s work, involving maintenance, system overhauls, planning, infrastructure investment and employee training. Recent heat records across the West have increased the importance of resource adequacy and ensuring that sufficient resources are available to serve customers under a range of conditions.

Looking ahead, Campbell discusses SRP’s plans to enter the Southwest Power Pool’s day-ahead market, which he says will allow the utility to leverage resource diversity across the West. He also addresses the role of nuclear energy. SRP relies on Palo Verde as a significant source of firm, carbon-free generation and is working with Arizona Public Service and Tucson Electric to examine additional nuclear opportunities in the state. Campbell also points to small modular reactors as an emerging technology, while noting that they are unlikely to play a role for the next decade or so.

With SRP targeting net-zero carbon emissions by 2050, Campbell says the utility is also examining nuclear power, hydrogen and other technologies that could help address the more difficult final portion of that transition. Because nuclear projects require significant capital investment and long development timelines, SRP is planning ahead for potential future opportunities.

The episode closes with Campbell reflecting on the broader utility industry and the value of collaboration. He says utilities are facing many of the same challenges and that technology can be both an important part of the solution and a challenge in itself. Because electric utilities do not necessarily compete directly with one another, Campbell says the industry has opportunities to collaborate, share knowledge and work together to address common problems.