
In the United States, electric distribution companies or utilities can be owned in three different ways: investor-owned, publicly run, or cooperatives. Investor-owned utilities (IOUs) are large electric distributors that issue stock owned by shareholders. Publicly owned utilities (POUs) are run by government entities and cooperatives (co-ops) are not-for-profit member-owned utilities.
Characteristics | Values |
---|---|
Ownership type | Investor-owned utilities, publicly run or managed utilities, cooperatives |
Number of utilities | Almost 3,000 electric distribution companies |
Percentage of customers served | 72% |
Number of customers served by investor-owned utilities | 168 average of 654,600 |
Number of publicly owned utilities | 1,958 |
Number of customers served by publicly owned utilities | 12,100 on average |
Largest investor-owned utilities | Pacific Gas and Electric, Southern California Edison Company |
Number of customers served by Pacific Gas and Electric | 5.48 million |
Number of customers served by Southern California Edison Company | 5.07 million |
Largest publicly owned utilities | Puerto Rico Electric Power Authority (PREPA), Los Angeles Department of Water and Power |
Number of customers served by PREPA | 1.47 million |
Number of customers served by Los Angeles Department of Water and Power | 1.43 million |
What You'll Learn
Investor-owned utilities
The United States has 1,958 publicly owned utilities (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 Los Angeles Department of Water and Power, a municipal utility 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 the Midwest and Southeast.
In 2017, almost 3,000 electric distribution companies—or utilities—were operating in the United States. EIA classifies utilities into three ownership types: investor-owned utilities, publicly run or managed utilities, and cooperatives. Although there are fewer investor-owned utilities than the other two types of utilities, they tend to be very large. Investor-owned utilities serve three out of every four utility customers nationwide. IOUs are most prevalent in heavily populated areas on the East and West coasts.
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Publicly run utilities
Publicly owned utilities, or POUs, include federal-, state-, and municipal-run utilities. In addition to government entities, political subdivisions may run POUs, also called public utility districts—utilities that residents vote into existence that operate independently of city or country government. 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 Los Angeles Department of Water and Power, a municipal utility with 1.43 million customers.
In 2017, 168 IOUs served an average of 654,600 electric customers. Almost 3,000 electric distribution companies—or utilities—were operating in the United States in 2017. EIA classifies utilities into three ownership types: investor-owned utilities, publicly run or managed utilities, and cooperatives. Although there are fewer investor-owned utilities than the other two types of utilities, they tend to be very large. Investor-owned utilities serve three out of every four utility customers nationwide. Investor-owned utilities, or IOUs, are large electric distributors that issue stock owned by shareholders. Almost three-quarters of utility customers get their electricity from these companies. IOUs are most prevalent in heavily populated areas on the East and West coasts. The two largest IOUs are in California: Pacific Gas and Electric, with 5.48 million customers, and Southern California Edison Company, with 5.07 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 the Midwest and Southeast. DTE, formerly Detroit Edison, is one of the largest energy companies that focuses on much more than creating and distributing electricity and natural gas. The diversified energy company is also involved with developing and managing energy-related businesses, including non-utility organizations. American Electric Power, or AEP, is also dedicated to sustainability, economic development, and smart infrastructure.
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Cooperatives
Co-ops are different from investor-owned utilities (IOUs), which serve three out of every four utility customers nationwide. IOUs are large electric distributors that issue stock owned by shareholders. Almost three-quarters of utility customers get their electricity from these companies.
In contrast, co-ops are not-for-profit and are owned by their members. They are run by their members and serve their members' needs. Co-ops are located in 47 states but are most prevalent in the Midwest and Southeast.
Co-ops are different from publicly owned utilities (POUs), which include federal-, state-, and municipal-run utilities. In addition to government entities, political subdivisions may run POUs, also called public utility districts—utilities that residents vote into existence that operate independently of city or country government. 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 Los Angeles Department of Water and Power, a municipal utility with 1.43 million customers.
Co-ops are different from investor-owned utilities (IOUs), which serve three out of every four utility customers nationwide. IOUs are large electric distributors that issue stock owned by shareholders. Almost three-quarters of utility customers get their electricity from these companies.
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Electric transmission systems
American Electric Power (AEP) is the owner of the largest electricity transmission system in the United States. AEP's 40,000-mile network serves approximately ten percent of the Eastern Interconnection and eleven percent of the Electric Reliability Council of Texas.
AEP is dedicated to sustainability, economic development, and smart infrastructure. DTE, formerly Detroit Edison, is one of the largest energy companies that focuses on much more than creating and distributing electricity and natural gas. The diversified energy company is also involved with developing and managing energy-related businesses, including non-utility organizations.
In 2017, 168 investor-owned utilities (IOUs) served an average of 654,600 electric customers. Almost 3,000 electric distribution companies—or utilities—were operating in the United States in 2017. EIA classifies utilities into three ownership types: investor-owned utilities, publicly run or managed utilities, and cooperatives. Although there are fewer investor-owned utilities than the other two types of utilities, they tend to be very large. Investor-owned utilities serve three out of every four utility customers nationwide. IOUs are most prevalent in heavily populated areas on the East and West coasts.
The two largest IOUs are in California: Pacific Gas and Electric, with 5.48 million customers, and Southern California Edison Company, with 5.07 million customers. Publicly owned utilities, or POUs, include federal-, state-, and municipal-run utilities. In addition to government entities, political subdivisions may run POUs, also called public utility districts—utilities that residents vote into existence that operate independently of city or country government. 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 Los Angeles Department of Water and Power, a municipal utility 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 the Midwest and Southeast.
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Energy-related businesses
The U.S. Energy Information Administration (EIA) classifies electric utilities into three ownership types: investor-owned utilities, publicly run or managed utilities, and cooperatives.
Investor-owned utilities (IOUs) are large electric distributors that issue stock owned by shareholders. Almost three-quarters of utility customers get their electricity from these companies. In 2017, 168 IOUs served an average of 654,600 electric customers. The two largest IOUs are in California: Pacific Gas and Electric, with 5.48 million customers, and Southern California Edison Company, with 5.07 million customers.
Publicly owned utilities (POUs) include federal-, state-, and municipal-run utilities. In addition to government entities, political subdivisions may run POUs, also called public utility districts—utilities that residents vote into existence that operate independently of city or country government. 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 Los Angeles Department of Water and Power, a municipal utility 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 the Midwest and Southeast.
American Electric Power (AEP) is another one of the largest electricity utility companies as well as the owner of the largest electricity transmission system in the country. DTE, formerly Detroit Edison, is one of the largest energy companies that focuses on much more than creating and distributing electricity and natural gas. The diversified energy company is also involved with developing and managing energy-related businesses, including non-utility organizations.
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Frequently asked questions
Investor-owned utilities (IOUs) are large electric distributors that issue stock owned by shareholders. Almost three-quarters of utility customers get their electricity from these companies.
Investor-owned utilities (IOUs) are large electric distributors that issue stock owned by shareholders. Almost three-quarters of utility customers get their electricity from these companies.
Publicly owned utilities (POUs) include federal-, state-, and municipal-run utilities. In addition to government entities, political subdivisions may run POUs, also called public utility districts—utilities that residents vote into existence that operate independently of city or country government.
Cooperatives, or co-ops, are not-for-profit member-owned utilities. Co-ops are located in 47 states but are most prevalent in the Midwest and Southeast.