For instance, many places aleady have 'de-regulated' markets for energy. See FERC 888 & 889 [1]. And, states like Pennsylvania already allow consumers to choose between different distribution utilities.
Further, the Federal Gov't and DoE are pushing for things like microgrids and smart cities and smart buildings where local energy can be produced and stored and bought from and sold back to the grid [2] [3].
Traditional distribution utilities in many places are facing the 'renewable-storage death spiral'. That is, many customers can store and even generate energy cheaper than it costs to buy it from the utility. This causes the utility to raise rates, which then causes more customers to switch to local generation. Note that the residential market is just a small piece of the pie. You have to look at commercial and industrial, which normally get different rate structures, to see where things are happening.
Distribution utilities won't go away, but their model must change. Residential, Commercial, and Industrial will probably always need connection to the grid for safety reasons. Plus, distribution utilities are usually really good, and sometimes even efficient at laying copper and responding to outages.
[1]: https://en.wikipedia.org/wiki/ISO_RTO [2]: https://www.whitehouse.gov/the-press-office/2015/09/14/fact-... [3]: http://energy.gov/oe/services/technology-development/smart-g...