DOE/EIA-0620
Distribution Category UC-950


 
 
 
The Changing Structure
of the Electric Power Industry:
Selected Issues, 1998
 
July 1998
 
 
Energy Information Administration
Office of Coal, Nuclear, Electric and Alternate Fuels
U.S. Department of Energy
Washington, DC 20585
 

This report was prepared by the Energy Information Administration, the independent statistical and analytical agency within the Department of Energy. The information contained herein should not be construed as advocating or reflecting any policy position of the Department of Energy or of any other organization.


Contents

Executive Summary

Preface

Contacts

1. Introduction

2. An Overview of Electricity Trade

Background

The Supply Side: Generation and Transmission

The Demand Side: Residential, Commercial, and Industrial User

The Wholesale Market: Trade and Price Issues

Emerging Issues

Conclusions



3. Development of Independent Transmission System Operators

Introduction

An Overview of the Bulk Power Transmission System

Emergence of the Independent System Operator Concept

Status of ISO Proposals

Responsibilities of ISOs

Summary and Conclusion



4. Ratesetting and Consumer Choice Issues in Electricity Restructuring

Background

Treatment of Stranded Costs by States

Performance-Based Ratemaking (PBR)

Pilot Programs

Conclusion



5. State and Federal Restructuring Initiatives

Background

Congressional Initiatives

Administration Proposal

States' Perspectives on Federal Legislation

Stakeholders' Perspectives on Federal Legislation

State Initiatives



Appendices

A. Selected Provisions of The Energy Policy Act of 1992 and The Federal Power Act

B. Average Revenue per Kilowatthour by Sector, 1988-1996

C. Data on Electric Trade Data in the United States, 1996

D. Fundamentals of Electric Power Transmission and Integrating Nonutility Generators

E. Treatment of Stranded Costs in States as of April 30, 1998

F. Electricity Restructuring Bills Introduced in the 105th Congress as of May 31, 1998



Tables

1. Major Characteristics of U.S. Electric Utilities by Type of Ownership

2. Composition of Generating Capability and Generation in the Electric Power Industry, 1996

3. Number of Retail Customers by Sector in the United States, 1990-1996

4. Retail Sales, Revenue, and Average Price Paid by End-User Sector, 1990-1996

5. End-User Sector Shares and Annual Growth Rates, 1990-1996

6. Average Retail Electricity Prices by End-Use Sector, 1990-1996

7. Retail Sales, Revenue, and Price by Requirement, Partial Requirement, and Non-Requirement Utilities, 1990-1996

8. Market Share of Wholesale Trade, Various Years

9. Sales for Resale and Purchases by Investor-Owned Electric Utilities, 1990-1996

10. Cost of Firm and Non-Firm Purchases by Investor-Owned Electric Utilities

11. Revenue from Firm and Non-Firm Sales for Resale by Investor-Owned Electric Utilities

12. Average Price of Electricity for Wholesale Trade by Investor-Owned Electric Utilities

13. Average Wholesale Price for From and To Trade by Investor-Owned Electric Utilities

14. Electricity Purchases and Sales by Federal Utilities, Fiscal Year Ending September 30, 1995

15. Summary Information on Approved and Planned Independent System Operators as of March 31, 1998

16. Major Categories of Information on the Open Access Same-Time Information System (OASIS)

17. Treatment of Stranded Costs by States as of April 30, 1998: A Summary

18. Retail Pilot Programs as of April 30, 1998

19. Proposed Legislation Influencing the Restructuring of the Electric Power Industry During the 105th Congress as of May 31, 1998



Figures

1. Composition of the Electric Power Industry in the United States, 1996

2. Net Generation by Different Classes of Utilities, Average of Selected Years, 1990-1996

3. Nonutility Generation Purchased by the Utility Sector, Average of Selected Years, 1990-1996

4. North American Electric Grids, North American Reliability Council (NERC) Regions, and Transmission Lines

5. Sales to Ultimate Consumers by Class of Utility, Average of Selected Years, 1990-1996

6. Wholesale Power—Basic Elements

7. Exchange, Wheeling, and Losses by U.S. Electric Utilities, 1990-1996

8. Purchases, Sales for Resale, Net Generation, and Sales to Consumers by the U.S. Electric Power Industry, 1990-1996

9. Market Share of Purchased Power by Utility Sector, Average of Selected Years, 1990-1996

10. Sales to Resale Market Share by Utility Sector, Average of Selected Years, 1990-1996

11. Conceptualization of Premium Payments in Electricity Trade

12. Percent Distribution of Net Electric Utility Plant Investment, 1996

13. Independent System Operators in Operation, Proposed, or Under Discussion as of March 31, 1998

14. Overview of an Independent System Operator’s Responsibilities

15. Distribution of Operation and Maintenance Expenses for Investor-Owned Utilities, 1996

16. Example of the Effect of Parallel Path Flows on the Contract Path Pricing Method

17. Example of the Pancake Effect of the Contract Path Pricing Method

18. Example of Congestion Charges and Fixed Transmission Rights

19. Organizational Structure for Electric System Reliability

20. Overview Concept of an OASIS Node

21. Groups with an Interest in Electric Industry Restructuring

22. States Which Have Issued Comprehensive Deregulation Orders and/or Enacted Restructuring Legislation as of June 1, 1998




Navigation Bar
EIA HomePage Bookshelf Fuel Overview Applications Feedback Search

File last modified: August 6, 1998

Contact:
Contact Name
skanhouwa@eia.doe.gov
Phone: (202) 426-1257
If you are having technical problems with this site, please contact the EIA Webmaster at wmaster@eia.doe.gov