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The Changing Structure of the Electric Power Industry 2000: An ... - EIA

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Table 3. Number <strong>of</strong> <strong>Electric</strong> Utilities by Class <strong>of</strong> Ownership and NERC Region, 1998<br />

NERC Region a<br />

Investor-<br />

Owned Federal<br />

State,<br />

Municipal,<br />

and O<strong>the</strong>r<br />

Government Cooperative Total<br />

ECAR ................. 43 0 228 103 374<br />

ERCOT ................ 6 0 66 58 130<br />

FRCC ................. 3 0 31 12 46<br />

MAAC ................. 18 0 49 19 86<br />

MAIN .................. 17 0 131 33 181<br />

MAPP ................. 14 0 486 171 671<br />

NPCC ................. 58 0 127 10 195<br />

SERC ................. 20 2 352 262 636<br />

SPP................... 11 0 250 86 347<br />

WSCC ................. 27 7 253 137 424<br />

Subtotal NERC 217 9 1973 891 3090<br />

Alaskab ................ 19 0 36 21 76<br />

Hawaiib ................ 3 0 0 0 3<br />

U.S. Total ............. 239 9 2,009 912 3,169<br />

a NERC is <strong>the</strong> North American <strong>Electric</strong> Reliability Council, formed in 1968 by <strong>the</strong> electric utility industry to promote <strong>the</strong> reliability<br />

and adequacy <strong>of</strong> bulk power supply in <strong>the</strong> electric utility systems <strong>of</strong> North America.<br />

b Alaska and Hawaii are not full members <strong>of</strong> NERC.<br />

Note: See Figure 7 for a map <strong>of</strong> NERC regions.<br />

Source: Energy Information Administration, Form <strong>EIA</strong>-861, “<strong>An</strong>nual <strong>Electric</strong> Utility Report.”<br />

<strong>Power</strong> Administration, <strong>the</strong> Western Area <strong>Power</strong> Administration,<br />

<strong>the</strong> Southwestern <strong>Power</strong> Administration, and<br />

<strong>the</strong> Sou<strong>the</strong>astern <strong>Power</strong> Administration (Figure 10).<br />

<strong>The</strong>se Federal utilities exist to market and sell <strong>the</strong> power<br />

produced at Federal hydroelectric projects. <strong>The</strong>y also<br />

purchase energy for resale from o<strong>the</strong>r electric utilities in<br />

<strong>the</strong> United States and Canada.<br />

<strong>The</strong> ninth Federal utility is <strong>the</strong> Tennessee Valley<br />

Authority (TVA), <strong>the</strong> largest Federal power producer,<br />

which operates its own power plants and sells <strong>the</strong> power<br />

in <strong>the</strong> Tennessee Valley region in both <strong>the</strong> wholesale and<br />

retail markets. <strong>The</strong> TVA generates electricity from coal,<br />

gas, oil, and nuclear power as well as hydropower.<br />

Of <strong>the</strong> Federal utilities, three are considered major<br />

producers <strong>of</strong> electricity: <strong>the</strong> TVA, <strong>the</strong> USACE, and <strong>the</strong><br />

USBR. Generation by <strong>the</strong> USACE, except for <strong>the</strong> North<br />

Central Division (Saint Mary's Falls at Sault Ste. Marie,<br />

Michigan) and by <strong>the</strong> USBR, is marketed by <strong>the</strong> four<br />

PMAs.<br />

Consumers <strong>of</strong> Federal power are usually large industrial<br />

consumers or Federal installations. Most <strong>of</strong> <strong>the</strong> remaining<br />

energy generated by non-pr<strong>of</strong>it Federal utilities<br />

is sold in <strong>the</strong> wholesale market to publicly owned<br />

utilities and rural cooperatives for resale at cost. <strong>The</strong>se<br />

18<br />

wholesale consumers have preference claims to Federal<br />

electricity. Only <strong>the</strong> surplus remaining after meeting <strong>the</strong><br />

energy requirements <strong>of</strong> preference consumers is sold to<br />

investor-owned utilities.<br />

O<strong>the</strong>r Publicly Owned Utilities<br />

Publicly owned electric utilities can be categorized as<br />

generators and nongenerators. (In contrast, virtually all<br />

investor-owned electric utilities own and operate generating<br />

capacity.) Generators are those electric utilities that<br />

own and operate generating capacity to supply some or<br />

all <strong>of</strong> <strong>the</strong>ir customers’ needs. However, some generators<br />

supplement <strong>the</strong>ir production by purchasing power. <strong>The</strong><br />

nongenerators rely exclusively on power purchases.<br />

<strong>The</strong>ir primary function is to distribute electricity to <strong>the</strong>ir<br />

consumers. <strong>The</strong> nongenerators comprise over half <strong>of</strong> <strong>the</strong><br />

total number <strong>of</strong> publicly owned electric utilities.<br />

O<strong>the</strong>r publicly owned utilities include municipal<br />

authorities, State authorities, public power districts, irrigation<br />

districts, and o<strong>the</strong>r State organizations. Municipal<br />

utilities tend to be concentrated in cities where <strong>the</strong> loads<br />

are small. <strong>The</strong>y exist in every State except Hawaii, but<br />

most are located in <strong>the</strong> Midwest and Sou<strong>the</strong>ast. State<br />

authorities are utilities that function in a manner similar<br />

to Federal utilities. <strong>The</strong>y generate or purchase electricity<br />

Energy Information Administration/ <strong>The</strong> <strong>Changing</strong> <strong>Structure</strong> <strong>of</strong> <strong>the</strong> <strong>Electric</strong> <strong>Power</strong> <strong>Industry</strong> <strong>2000</strong>: <strong>An</strong> Update

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