To: John Mansfield who wrote (384 ) 5/17/1998 5:07:00 AM From: John Mansfield Respond to of 618
[UTILITIES] 'Welcome to The Edison Electric Institute Here you see some numbers (of different types of electric utilities). John __________ ' Our U.S. shareholder-owned electric company members generate and distribute more than three-quarters of the nation's electricity. EEI's International Affiliates provide electricity worldwide and our growing list of Associates provide services to the industry. eei.org ___ Electric Utility Restructuring/Competition Issues The Number of Electricity Suppliers in Today's Power Market There is a broad diversity of electricity suppliers in the U.S. There are regulated electric utilities such as shareholder-owned companies, and there are non-regulated utilities such as rural electric cooperatives and government-owned utilities. Government-owned utilities include municipal systems, public power districts, state projects, and federal agencies. In the past few years, laws designed to promote competition in wholesale electricity markets have led to the creation of many non-regulated suppliers. These include PURPA*-qualifying facilities, exempt wholesale generators (EWGs), and power marketers. The share of nationwide generating capacity from non-utility generators (NUGs) has more than doubled from 3.6 percent in 1987 to 8.4 percent in 1996; in fact, since 1990, NUGs have contributed over half of all new investment in generating facilities. Many of these new power producers are not bound by the same regulations imposed on shareholder-owned utilities. The growth of competition that benefits all consumers, however, depends on the creation of a system where all electricity suppliers play by the same set of rules. The total number of each supplier (as of March 1998) is shown below. Shareholder-owned Utilities 223 Cooperatives 922 Municipal Systems 1,818 Public Power Districts 75 State Projects 68 Federal Agencies 37 Non-utility Generators (excluding EWGs) 4,132 Domestic Exempt Wholesale Generators (EWGs) 144 Power Marketers 400 *Public Utility Regulatory Policies Act eei.org ____ The Living Grid: Evolving to Meet the Power Needs of America As part of an integrated system, companies have traditionally honored a code of mutual assistance. This assistance ranges from sharing power reserves when lines go down, to sharing work crews, equipment, and other resources to speed up power restoration. The American electric system is one of the most reliable ones in the world. Its reliability is the result of the interconnected structure of its transmission system known as the grid and the coordinated and cooperative way in which electric companies have agreed to operate within that structure. Greater competition in the electricity market has meant expanded use of the grid. The industry is working diligently to adapt the nation's transmission system and its operations to meet the demands of burgeoning competition while maintaining reliability. For reliability to be maintained and for consumers and electricity providers to reap the benefits of increased competition, a high level of coordinated operation must continue to exist. Investments must be made to expand and upgrade the grid and encourage the development and use of new technologies to enhance its efficiency. eei.org