Wiktor Wise
The US electrical services sector is a large and complex industry, with a mix of regulated and deregulated markets. In 2017, almost 3,000 electric distribution companies or utilities were operating in the US, according to the US Energy Information Administration's (EIA) electric power sector survey. The EIA classifies utilities into three ownership types: investor-owned utilities, publicly run or managed utilities, and cooperatives. IBISWorld statistics show that as of 2024, there are 242,372 enterprises in the electricians industry in the US, an increase of 1.88% from 2023.
| Characteristics | Values |
|---|---|
| Number of enterprises in the Electricians industry | 242,372 |
| % increase in number of enterprises from 2023 | 1.88% |
| Number of electric distribution companies operating in 2017 | 3,000 |
| Number of investor-owned utilities customers served in 2017 | 72% |
| Number of investor-owned utilities | 168 |
| Number of customers served by the two largest investor-owned utilities | 5.48 million and 5.07 million |
| Number of publicly owned utilities | 1,958 |
| Number of customers served by the two largest publicly owned utilities | 1.47 million and 1.43 million |
| Number of states with cooperatives | 47 |
| Revenue of Quanta Services in 2023 | over 20.88 billion USD |
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What You'll Learn
- Investor-owned utilities (IOUs) served 72% of US electricity customers in 2017
- Publicly-owned utilities (POUs) are federal, state, or municipal-run
- Cooperatives (co-ops) are not-for-profit, member-owned utilities
- The largest electrical contracting company in the US as of 2023 was Quanta Services
- There are 242,372 electrician enterprises in the US as of 2024
Investor-owned utilities (IOUs) served 72% of US electricity customers in 2017
The US electricity sector is composed of almost 3,000 electric distribution companies, or utilities, which the EIA categorises into three ownership types: investor-owned utilities, publicly run or managed utilities, and cooperatives. In 2017, 168 investor-owned utilities (IOUs) served an average of 654,600 electric customers each, totalling 72% of US electricity customers. IOUs are large electric distributors that issue stock owned by shareholders. They tend to be very large, serving three out of every four utility customers nationwide.
IOUs are most prevalent in heavily populated areas on the East and West coasts, with the two largest IOUs being in California: Pacific Gas and Electric, with 5.48 million customers, and Southern California Edison Company, with 5.07 million customers. In 2017, almost three-quarters of utility customers got their electricity from these companies.
Publicly owned utilities, or POUs, include federal-, state-, and municipal-run utilities. In addition to government entities, political subdivisions may run POUs, also known as public utility districts. The United States has 1,958 POUs, with an average of 12,100 electricity customers each. The largest POUs are the state-run Puerto Rico Electric Power Authority (PREPA), with 1.47 million customers, and the municipal utility Los Angeles Department of Water and Power, with 1.43 million customers.
Cooperatives, or co-ops, are not-for-profit member-owned utilities. Co-ops are located in 47 states but are most prevalent in rural areas, the Midwest, and the Southeast. There are 812 co-ops in the United States, with an average of 24,500 electricity customers each. The largest cooperative is Pedernales Electric Co-op in Johnson City, Texas, with 333,809 customers.
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Publicly-owned utilities (POUs) are federal, state, or municipal-run
Public utilities, or utilities, refer to almost 3,000 electric distribution companies operating in the United States. Utilities are classified into three ownership types: investor-owned utilities, publicly run or managed utilities, and cooperatives.
POUs can be further divided into two categories: cooperative and municipal utilities. Cooperative utilities, or co-ops, are owned by the customers they serve and are not-for-profit. Co-ops are located in 47 states and are most prevalent in the Midwest, Southeast, and rural areas. The United States has 812 co-ops, with an average of 24,500 electricity customers each. Municipal utilities may include territories outside of city limits or may not serve the entire city.
The largest POUs are the state-run Puerto Rico Electric Power Authority (PREPA), with 1.47 million customers, and the Los Angeles Department of Water and Power, a municipal utility with 1.43 million customers. The largest co-op is the Pedernales Electric Co-op in Johnson City, Texas, with 333,809 customers.
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Cooperatives (co-ops) are not-for-profit, member-owned utilities
Cooperatives, or co-ops, are not-for-profit, member-owned utilities. They are owned and governed by the customers they serve, and these customers are also known as members. Co-ops are located in 47 states but are most prevalent in the Midwest and Southeast, as well as in rural communities.
Co-ops are voluntary organisations, and their members run the company democratically. Each member has a voice in the governance of the co-op and the delivery of its services. As shareholders, customers benefit from the co-op's profits, which are either reinvested in the organisation or distributed to members as dividends.
Co-ops are responsible for delivering critical utilities to their members, such as electricity, water, and telecommunications. They are particularly important in rural communities that investor-owned utility companies have neglected. In the 1930s, 90% of US citizens in cities had electricity, while 90% of rural homes did not. The Rural Electrification Act of 1936 was a federal loan program that provided electricity to rural populations, and farmer co-ops began to form to bring electricity to communities not covered by investor-owned utilities or municipal utilities.
Today, co-ops continue to serve the needs of their members and communities by providing reliable and affordable energy, water, and other public utilities. They also create local jobs and deliver other cultural and social benefits, such as providing the framework for community members to access crucial services like telehealth and online education. Co-ops are also taking steps to reduce their emissions and incorporate renewable energy sources.
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The largest electrical contracting company in the US as of 2023 was Quanta Services
The US electrical services sector is vast, with almost 3,000 electric distribution companies or utilities operating in the country as of 2017. The largest electrical contracting company in the US as of 2023 was Quanta Services, a Texas-based company that provides end-to-end solutions in the electric power sector. Quanta Services has been expanding its market share in the last few years, with its annual revenue in 2023 reaching over 20.88 billion US dollars, more than three times that of the second-largest company, Colorado's MYR Group.
Quanta Services has grown through the acquisition of other companies, including the Stronghold group of companies in 2017 and Cupertino Electric in 2024. The company has a significant presence in the electric power infrastructure solutions segment, and its large revenue increase in 2023 can be attributed to this segment.
The company has a history of providing leading specialty contractor services throughout the United States and has secured its position as a top electrical contractor through mergers and acquisitions, as well as revenue growth. Quanta Services' workforce has also expanded as a result of these strategic business moves.
In summary, Quanta Services is a prominent and expanding company in the US electrical services sector, solidifying its position as the largest electrical contracting company in the country in 2023 through its substantial revenue growth and strategic acquisitions.
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There are 242,372 electrician enterprises in the US as of 2024
As of 2024, there are 242,372 electrician enterprises in the US, representing a 1.88% increase from 2023. This large number of electrical service companies in the US is indicative of the country's vast and evolving electrical industry.
The US electrical industry is primarily served by three types of utilities: investor-owned utilities (IOUs), publicly-owned utilities (POUs), and cooperatives. IOUs, which are large electric distributors owned by shareholders, served 72% of US electricity customers in 2017. POUs, on the other hand, are government-run or managed by political subdivisions and served an average of 12,100 customers each in the same year. Cooperatives, or co-ops, are not-for-profit member-owned utilities that are most prevalent in rural areas and the Midwest and Southeast regions.
The largest IOUs are in California, with Pacific Gas and Electric serving 5.48 million customers, and Southern California Edison Company serving 5.07 million. The largest POU is the Puerto Rico Electric Power Authority, with 1.47 million customers, closely followed by the Los Angeles Department of Water and Power, with 1.43 million.
The US electrical industry has undergone significant changes over time, transitioning from coal-based energy production to more sustainable methods such as wind, solar, nuclear, and hydroelectric power. This shift towards cleaner energy sources has driven companies to adopt more sustainable practices. Additionally, the industry is characterised by a mix of regulated and deregulated markets, with business owners having the option to choose their energy providers in deregulated markets.
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Frequently asked questions
As of 2024, there are 242,372 enterprises in the electricians industry in the US.
The US Energy Information Administration (EIA) classifies electrical service companies into three types: investor-owned utilities, publicly run or managed utilities, and cooperatives.
Investor-owned utilities (IOUs) are the most common type of electrical service company, serving 72% of US electricity customers.
It depends on whether you live in a regulated or deregulated market. In a regulated market, only one utility provider is available, meaning you cannot choose your provider. In a deregulated market, you can choose from third-party companies that offer energy at their own rates.
