LED Street Lighting the Newest Challenge to Old Utility Business Models

In most cities around the country, the local electric distribution company provides overhead street lighting as a basic service at a flat monthly rate per light, which includes the light itself, maintenance, and electricity. Therein lies the rub—regulated utilities often have little incentive to invest in more efficient streetlights, which offer a reliable, consistent, and often lucrative revenue stream that comes at a time of day (or night) when demand is low.

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