The sector is not fully recovered from the impacts of the pandemic, but some analysts say the headwinds will only exist for the short term.

A retail energy provider says the decision reinforces the state's practice of putting Dominion Energy's interests ahead of customers.

Utilities are increasingly turning to smart grids, which allow them to better gauge and meet the demand from consumers, reduce power plant costs and have "real time" customer demand and billing data to analyze.

"I think 841 … [may be] one of the single most significant ... actions taken by a government agency to address carbon mitigation and the transition to a clean energy future," FERC Chair Neil Chatterjee told reporters.

Hawaiian Electric's shortcomings show the nation how traditional regulation's weaknesses drive the need for performance-based regulation in the sector.