BEECHER - NAWC

Water ComparedIndustries Compared2. . The Utility Industries ComparedThe telecommunications, electric, natural gas, and water utilities have a number of features incommon. All provide services considered more or less essential to a comfortable modemexistence. At a general level, all demonstrate parallel functions-production, transmission,and distribution. Historically, the similarities among these industries, particularly in terms ofmonopoly features, were stressed more than the differences. In some cases, "combination"utilities provided more than one service, notably electricity and natural gas (and sometimeswater). The similarities among the utilities also were reflected in the legal and regulatoryinstitutions overseeing them.Table 2-1 compares the four industries according to basic functions. The comparisonillustrates that at a fundamental level, the industries have much in common in terms offunctional activities. However, important differences also begin to emerge.Table 2-1Facilities Used in Utility Services by Functional AreaFunctional Telecommunications Electricity Natural Gas WaterAreaGeneration/ Equipment based Power generation Natural gas Surface water andproduction transmission of voice facilities; produced wellfields; a groundwater withdrawal;and data. mostly from nonrenewable a locally renewablenonrenewable natural resource. natural resource.natural resources.Storage None (service on None (service on Natural gas storage Raw water storage indemand). demand). facilities reservoirs andunderground storage inwellfields.Transmission Local access and Higb voltage Interstate and Water mains and pumpingtransport area transmission intrastate pipelines stations; relatively(LATA); relatively facilities (675,000 (300,000 miles); expensive to transportinexpensive to miles); relatively relatively because physicaltransport. inexpensive to inexpensive to properties cannot betransport transport. altered (e.g., through("wires").compression).Treatment Not applicable. Voltage regulation Drying and Water treatment facilitiesfor transmission. compression for for meeting drinkingtransmission. water standards.Distribution Local exchange Local distribution Local distribution Local distribution systemscarrier services. systems ("wires''). systems. (29 million miles of pipe),including treated waterstorage.Source: Author's construct.NAWC 5 September 1998