The US Consumes
Close to 4 Billion Megawatt-Hours (MWh) of Electricity per year
Mar 30, 2006 - Business Wire
Research and Markets Laura Wood
press@researchandmarkets.com Fax: +353 1 4100 980
Research and Markets (http://www.researchandmarkets
.com/reports/ c35037) has announced the addition of Electric Energy
Distribution - Industry Profile to their offering.
Over 6,000 companies in the US are involved in the wholesale trade
and retail distribution of electricity, with combined annual revenue of
more than $220 billion. These include owners of high voltage
transmission lines and retail distribution systems, and intermediaries
like energy dealers and brokers. The US consumes close to 4 billion
megawatt-hours (MWh) of electricity per year, about 50 percent of which
is bought and sold on the wholesale market.
The electric energy industry in the US is currently in a state- and
federally-sponsored transition, or Electric Restructuring. The
traditional electricity industry consists of large investor-owned
utilities (IOUs); municipal utilities; rural cooperatives; and
government entities, like the Tennessee Valley Authority (TVA) that own
the generation, transmission, and retail distribution facilities within
a limited area, and serve all customers within that area as tightly
regulated 'natural monopolies'. Under restructuring, the generation,
transmission, and distribution operations are carried out by separate
companies, and the owners of local distribution lines make their lines
available to competitors.
About half the states have adopted restructuring legislation, but
only a third are actively engaged in restructuring.
The intended purpose of moving toward a less regulated electricity
market is to decrease the cost of electricity by fostering competition
among producers. The practical effect of federal and state legislation
has been the divestment of generation facilities by local utilities.
Despite restructuring, many local electricity ...
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