1 Answer
In the United States, electricity is sold by electric utility companies. These companies are responsible for generating, transmitting, and distributing electricity to homes and businesses. However, the way electricity is sold can vary depending on where you live. Here's how it generally works:
In general, most people will buy electricity from the utility company or retail provider serving their area, depending on whether their state has deregulated the market or not.
- Investor-Owned Utilities (IOUs): These are private companies that provide electricity in most areas. They are regulated by state government agencies and are responsible for generating or purchasing electricity and delivering it to customers. Examples include companies like Pacific Gas & Electric (PG&E) and Consolidated Edison (Con Edison).
- Publicly Owned Utilities: These are government-run companies that provide electricity to a specific area. They operate in a similar way to IOUs but are owned by local or state governments. Examples include Los Angeles Department of Water and Power (LADWP).
- Cooperatives: Electric cooperatives are non-profit organizations owned by the customers they serve. These are typically found in rural areas. Examples include Tri-State Generation and Transmission Association.
- Retail Electricity Providers (in deregulated markets): In some states, like Texas or parts of Pennsylvania, the electricity market has been deregulated. This means customers can choose their electricity supplier from a list of competitive providers, even though the utility company still manages the infrastructure and delivery.
In general, most people will buy electricity from the utility company or retail provider serving their area, depending on whether their state has deregulated the market or not.