1 Answer
In the United States, electricity is not owned by a single entity, but rather by a mix of private companies, cooperatives, and public entities. The ownership and operation of electricity generation, transmission, and distribution are divided among several types of organizations:
While these groups own the electricity infrastructure, electricity itself is a public resource that flows through the grid and is purchased by consumers. The U.S. electricity system is complex, with regulations at the federal, state, and local levels influencing how it is generated and distributed.
- Investor-Owned Utilities (IOUs): These are private companies that generate, transmit, and distribute electricity to customers. They are owned by shareholders and operate for profit. Examples include companies like Pacific Gas and Electric (PG&E), Consolidated Edison, and Duke Energy.
- Public Utilities: Some cities, towns, and local governments own and operate their own electric utilities. These are often called municipal utilities. They are typically not-for-profit and aim to serve the public rather than generate shareholder profits. Examples include Los Angeles Department of Water and Power (LADWP) and Sacramento Municipal Utility District (SMUD).
- Cooperatives: These are non-profit organizations that are owned by the customers they serve. Rural areas and less densely populated regions are often served by electric cooperatives. Examples include Touchstone Energy Cooperatives.
- Independent Power Producers (IPPs): These are companies that generate electricity but don’t necessarily handle the transmission or distribution. They sell electricity to utilities or directly to consumers, often through long-term contracts.
- Federal Government: Some parts of the U.S. electricity grid are owned or operated by federal entities. For instance, the Tennessee Valley Authority (TVA) operates in parts of the southeastern U.S., providing power to public utilities and local governments.
While these groups own the electricity infrastructure, electricity itself is a public resource that flows through the grid and is purchased by consumers. The U.S. electricity system is complex, with regulations at the federal, state, and local levels influencing how it is generated and distributed.