902,
Utility companies, and other service firms (towing contractors, taxicab and car services, etc.), can argue a need to encrypt channels/talkgroups used for customer service. Say, for example, a crew goes out to shut off a delinquent customer, and the customer is present and opts to pay any owed amounts via credit card. Credit card numbers being put over the air can create a problem for the company should some unintended party copy the numbers, begin making fradulent purchases, and it can be connected back that the source of the info was a utility (or towing, or whatever) company's radio traffic. This is, of course, aside from the the potentially embarrassing traffic that so-and-so can't pay his bills in an timely fashion in the first place.
Now, as to whether or not operational traffic needs to be encrypted is a whole other matter. I am familiar with volunteer fire departments that have as part of their standard radio channel plan the local utility frequencies (rx only) in order to monitor the traffic of crew(s) responding to or operating at the scene of gas leaks, wires down, etc., etc. Any move to encrypt such traffic would obviously negate such monitoring ability. But, in light of the recent experiences Con Edison had in New York (the Long Island City area power failures during the summer and the days-long outages in Westchester during the last tropical storm), I could understand why any utility might consider systemwide encrpytion...to hide from public ears any troubles they are having getting power restored during difficult times. As one may already be aware, Con Edison is using an unmonitorable iDen network systemwide....hmm...would have been interesting to hear the real story behind what happened a few weeks ago...
SCANdal