The Changing Structure of the
Electric Power Industry 2000:
An Update
October 2000
Contents
Preface
Executive Summary
1. Introduction
2. Historical Overview of the Electric Power
Industry
3. The U.S. Electric Power Industry Infrastructure:
Functions and Components
Introduction
Generation
Transmission
Distribution
The Components of Electricity Supply -
Utilities and Nonutilities
4. The Federal Statutory Background of the Electric
Power Industry
Introduction
The Public Utility Holding Company Act of
1935
The Public Utility Regulatory Policies Act of
1978
The Energy Policy Act of 1992
5. Factors Underlying the Restructuring of the
Electric Power Industry
Introduction
Price Differences
Technological Advances
6. Federal Legislative Initiatives
Introduction
Major Issues Under Debate
The Administration's Comprehensive
Electricity Competition Proposal
7. Wholesale Power Markets and Restructuring the U.S.
Power Transmission System
Introduction
FERC Promotes Wholesale Competition and
Transmission Efficiency
Status of Regional Transmission
Organizations
Wholesale Electricity Trading Hubs and
Power Exchanges
Market Power In Wholesale Electricity
Markets
Conclusion
8. The Role of the States in Promoting
Competition
Case Studies
9. Mergers, Acquisitions, and Power Plant
Divestitures of Investor-Owned Electric Utilities
Appendices
A. History of the U.S. Electric Power Industry,
1882-1991
B. Historical Chronology of Energy-Related Milestones, 1800-2000
(Not available electronically)
C. Pending Federal Restructuring Legislation
D. Electric Power Industry Statistics
Tables
1. Percentage Change Between Various Electric
Power Industry Statistics From The Great Depression Through World War II,
1932-1945
2. Major Characteristics of U.S. Electric
Utilities by Type of Ownership, 1998
3. Number of Electric Utilities by Class of
Ownership and NERC Region, 1998
4. Energy Supply Participants and Their
Operations, 1998
5. Major Characteristics of U.S. Nonutilities
by Type
6. Relative Size of Registered Holding Companies
as of December 31, 1998
7. Total Projected Additions of Electricity
Generating Capability for Electric Generators by Technology Type,
1999-2020
8. Proposed Legislation Influencing the
Restructuring of the Electric Power Industry Introduced into the 106th
Congress as of May 1, 2000
9. Overview of The Federal Energy Regulatory
Commission's Efforts Promoting Competition in the Electric Power
Industry
10. Companies Eligible to Sell Wholesale Power
at Market-Based Rates, as of May 1, 2000
11. Major Provisions of FERC Order 888 on Open
Access
12. Summary of Major Provisions of the Federal
Energy Regulatory Commission's Order 2000 Final Rule Establishing
Regional Transmission Organizations
13. Selected Information on Independent System
Operators
14. Mergers and Acquisitions Between
Investor-Owned Electric Utilities or Between Investor-Owned Electric
Utilities and Independent Power Producers, 1992 Through April 2000
15. Comparison of the Number of Investor-Owned
Electric Utilities Owning Generation Capacity, 1992 and 2000
16. Selected Mergers and Acquisitions Involving
Investor-Owned Electric Utilities and Natural Gas Companies, 1997 Through
April 2000
17. Overview of Strategic Benefits of a
Combined Electric and Natural Gas Company
18. Government Agencies Responsible for
Reviewing Mergers and Acquisitions Involving Electric Utilities
19. Status of Power Generation Asset
Divestitures by Investor-Owned Electric Utilities, as of April 2000
B1. Historical Chronology of Energy-Related Milestones, 1800-2000
Not available electronically.
D1. Electric Power Industry Summary Statistics for
the United States, 1998
Figures
1. Annual Statistics for the Total Electric Utility
Industry, 1932-1980
2. Electric Power Supply Functions
3. Prime Movers of Electricity
Schematic of Generic Thermal Generator
Schematic of Gas Turbine
Schematic of Combined Cycle
Cogenration Schematic
4. Electric Power Industry Capability and Generation by
Energy Source, 1998
5. Energy Sources for Electricity Generation by
Region
6. Transmission Ownership in the United States
7. The Main Interconnections of the U.S. Electric Power
Grid and the 10 North American Electric Reliability Council Regions
8. Electric Control Area Operators - Continental United
States, 1998.
9. Service Areas for Investor-Owned Utilities, 1998
10. Service Areas of Federal Utilities, 1998
11. Publicly Owned Utilities in the United States,
1998
12. Service Areas of Cooperative Utilities, 1998
13. Shares of Nonutility Nameplate Capacity by Major
Industry Group, 1998
14. Share of Utility and Nonutility Nameplate Capacity, Net Generation,
Additions to Capacity, and Number of Units by Ownership Category, 1998
Nameplate Capacity
Net Generation
Additions to Capacity
Number of Units
15. Total Utility and Nonutility Nameplate Capacity, Net Generation,
Additions to Capacity, and Number of Units by Ownership Category, 1992-1998
Nameplate Capacity
Net Generation
Additions to Capacity
Number of Units
16. Annual Growth Rate of Utility and Nonutility Nameplate Capacity, Net
Generation, Additions to Capacity, and Number of Companies, 1992-1998
Nameplate Capacity
Net Generation
Additions to Capacity
Number of Units
17. Electric Utility Wholesale Power Purchases by
Ownership Type, 1998
18. U.S. International Electricity Trade, 1985-1998
19. Sales to Ultimate Consumers by Sector, 1992 and
1998
20. Share of Sales to Ultimate Consumers by Sector, 1992
and 1998
21. Sales to Ultimate Consumers by Class of Ownership,
1992 and 1998
22. Share of Sales to Ultimate Consumers by Class of
Ownership, 1992 and 1998
23. Status of State Electric Utility Deregulation
Activity, as of July 2000
24. Average Revenue per Kilowatthour for All Sectors by
State, 1998
25. Average Revenue per Kilowatthour for the Industrial
Sector by State, 1998
26. Relative Average Revenue of Electricity Sales: Ratio
of Industrial Consumers to All Consumers, 1960-1998
27. Independent System Operators and Regional
Transmission Organizations in Operation or Under Discussion as of April 1,
2000
28. Major Wholesale Electricity Trading Hubs and
Centralized Power Markets
29. Concentration of Ownership of Investor-Owned Utility
Generating Capacity, 1992 and 2000
30. Cumulative Electricity Generation Capacity Additions
Through 2020
31. Investor-Owned Electric Utility Generation Capacity
Divested or to be Divested by Census Division, as of April 2000
Contacts
This report was prepared by the staff of the
Electric Market Assessment Team, Electric Power Division, Office of Coal,
Nuclear, Electric and Alternate Fuels, Energy Information Administration.
Questions about this publication, as well as other energy inquiries, may be
directed to the National Energy Information Center at (202) 586-8800 or via
Internet e-mail at infoctr@eia.doe.gov. This report is
accessible via the Internet at http://www.eia.doe.gov/cneaf/electricity/page/pubs.html.
General information regarding this publication
may be obtained from Robert M. Schnapp, Director, Electric Power Division, by
telephone at (202) 287-1903 or by Internet at robert.schnapp@eia.doe.gov, or from
Dr. Suraj P. Kanhouwa, Chief, Electric Market Assessment Team, by telephone
at (202) 287-1919 or by Internet at suraj.kanhouwa@eia.doe.gov. Specific
questions regarding the preparation and content of this report should be
directed to William D. Liggett, Project Manager, by telephone at (202)
287-1727 or by Internet at william.liggett@eia.doe.gov.
Editing and production assistance for this
report was provided by Terry Varley, Sarah Loats, and Terri Thigpen.
Questions regarding specific chapters of the
report should be directed as follows:
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