# Presentation: 211660

## Electricity Cost of Service and Market Rates (Retail and Wholesale) Session 1

- Roger L. Sacquety
- February 2001
- Bangladesh Ministry of Energy and Mineral Resources

## Figure 1. Annual Statistics for the Total Electric Utility Industry, 1932-1980

**Figure 1. Annual Statistics for the ****Total Electric Utility Industry, 1932-1980**

-    Source: Electric Utility Systems Engineering Department of the General Electric Company, *Electric Utility Systems and Practices,* ed. Homer M. Rustebakke, 4th ed., Chapter 1, “The Electric Utility Industry” (New York, NY: Wiley & Sons, Inc., 1983), p. 4.

## Figure 2. Electric Power Supply Functions

**Figure 2. Electric Power Supply Functions**

## Figure 3. Prime Movers of Electricity

**Figure 3. Prime Movers of Electricity**

-    Source: R. Baldick, “Introduction to Electric Power Systems for Legal and Regulatory Professionals,” Course Materials, The University of Texas at Austin (1999).

## Figure 4. Electric Power Industry Capability 

**and Generation by Energy Source, 1998**

-  Source: **Capacity**: Form EIA-860A, “Annual Electric Generator Report-Utility” and Form EIA-860B, “Annual Electric Generator Report – Nonutility.” **Generation**: Form EIA-860B, “Annual Electric Generation Report – Nonutility” and Form EIA-759, “Monthly Power Plant Report.”

**Net Summer Capability****(776 thousand megawatts)**

## Figure 5. Energy Sources for Electricity Generation by Region

-    Note:  The large icons on this map represent about 10 GW of capacity, not individual plants, in a regional area for each fuel source.  Smaller icons represent about 5 GW capacity. Where less than 5 GW of capacity for a fuel type exists for an individual region or State, generating plants are not represented on this map.
-    Source: Form EIA-860A, “Annual Electric Generator Report – Utility” and Form EIA-860B, “Annual Electric Generator Report – Nonutility.”

## Figure 6. Transmission Ownership in the United States

- Investor-Owned

- Utilities

- 73%

- Cooperative Utilities

- 6%

- Publicly Owned

- Utilities

- 8%

- Federally

- Owned

- Utilities

- 13%

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**Figure 6. Transmission Ownership in the United States**

-  Source: Calculations made by the Energy Information Administration, Office of Coal, Nuclear, Electric, and Alternate Fuels, from data taken from FERC Form 1, “Annual Report of Major Electric Utilities, Licensees, and Others.” (Data for cooperative utilities are for 1997.)

## Figure 7. The Main Interconnections of the U.S. Electric Power Grid and the 10 North American Electric Reliability Council Regions

**Figure 7. The Main Interconnections of the U.S. Electric Power Grid and the 10 North American Electric Reliability Council Regions**

- Note: The Alaska Systems Coordinating Council (ASCC) is an affiliate NERC member.
- Source: North American Electric Reliability Council.

## Figure 8. Electric Control Area Operators - Continental United States, 1998

**Figure 8. Electric Control Area Operators - ****Continental United States, 1998**

-  Source: Energy Information Administration, Office of Coal, Nuclear, Electric and Alternate Fuels. Based on data contained in Form EIA-861, “Annual Electric Utility Report.”

## Figure 9. Service Areas of Investor-Owned Utilities, 1998

**Figure 9. Service Areas of Investor-Owned Utilities, 1998**

-  Source: Resource Data International, 1998.

## Figure 10. Service Areas of Federal Utilities, 1998

**Figure 10. Service Areas of Federal Utilities, 1998**

-    Source: EIA, Office of Coal, Nuclear, Electric and Alternate Fuels. Based on data contained in Form EIA-412, “Annual Report of Public Electric Utilities.”

## Figure 11. Publicly Owned Utilities in the United States, 1998

**Figure 11. Publicly Owned Utilities ****in the United States, 1998**

-    Source: EIA, Office of Coal, Nuclear, Electric and Alternative Fuels. Based on data contained in Form EIA-412, “Annual Report of Public Electric Utilities.”

## Figure 12. Service Areas of Cooperative Utilities, 1998

**Figure 12. Service Areas of Cooperative Utilities, 1998**

-    Source: National Rural Electric Cooperative Association’s website at http://www.nreca.org (1998).

## Figure 13. Shares of Nonutility Nameplate Capacity by Major Industry Group, 1998

**Figure 13. Shares of Nonutility Nameplate Capacity**** by Major Industry Group, 1998**

-    Note: Totals may not equal the sum of components due to independent rounding.
-    Source: Energy Information Administration, Form EIA-860B, “Annual Electric Generator Report – Nonutility.”

## Figure 14. Share of Utility and Nonutility Nameplate Capacity, 

**Figure 14. Share of Utility and Nonutility Nameplate Capacity, **
**Net Generation, Additions to Capacity, and Number of Units **
**by Ownership Category, 1998**

-    a Data for power marketers are not included.
-    Sources: Energy Information Administration, Form EIA-759, “Monthly Power Plant Report,” Form EIA-860A, “Annual Electric Generator Report – Utility,” Form EIA-861, “Annual Electric Utility Report,” and Form EIA-860B, “Annual Electric Generator Report – Nonutility.”

## Figure 15. Total Utility and Nonutility Nameplate Capacity, 

**Net Generation, Additions to Capacity, and Number of Units **
**by Ownership Category, 1992-1998**

**Nameplate Capacity**

**Net Generation**

**Additions to Capacity**

**Number of Companies****a**

-    a Data for power marketers are not included.
-    Sources:  Energy Information Administration, Form EIA-759, “Monthly Power Plant Report,” Form EIA-860, “Annual Electric Generator Report,” Form EIA-860A, “Annual Electric Generator Report – Utility,” Form EIA-861, “Annual Electric Utility Report,” Form EIA 867, “Annual Nonutility Power Producer Report,” and Form EIA-860B, “Annual Electric Generator Report – Nonutility.”

## Figure 16. Annual Growth Rate of Utility and Nonutility 

**Nameplate Capacity**

**Number of Companies****a**

**Net Generation**

**Additions to Capacity**

-    a Data for power marketers are not included.
-    Sources:  Energy Information Administration, Form EIA-759, “Monthly Power Plant Report,” Form EIA-860, “Annual Electric Generator Report,” Form EIA-860A, “Annual Electric Generator Report – Utility,” Form EIA-861, “Annual Electric Utility Report,” Form EIA 867, “Annual Nonutility Power Producer Report,” and Form EIA-860B, “Annual Electric Generator Report – Nonutility.”

**Figure 16. Annual Growth Rate of Utility and Nonutility **
**Nameplate Capacity, Net Generation, Additions to Capacity, **
**and Number of Companies, 1992-1998**

## Figure 17. Electric Utility Wholesale Power 

**Figure 17. Electric Utility Wholesale Power **
**Purchases by Ownership Type, 1998**(Billion Kilowatthours)

-    Notes: Data do not include utility purchases from power marketers. Totals may not equal sum of components due to independent rounding.
-    Source: Energy Information Administration, Form EIA-861, “Annual Electric Utility Report.”

## Figure 18. U.S. International Electricity Trade, 

**Figure 18. U.S. International Electricity Trade, **
**1985-1998**

-    Source: **1985-1994:** Energy Information Administration, *Annual Energy Review 1995,* DOE/EIA-0384(95) (Washington, DC, July 1996), Table 8.1. **1995-1998:** Energy Information Administration, *Electric Power Annual 1998,* Volume II, DOE/EIA-0348(98)/2 (Washington, DC, December 1999), Tables 41-43.

## Figure 19. Sales to Ultimate Consumers 

**Figure 19. Sales to Ultimate Consumers **
**by Sector, 1992 and 1998**

-    Notes: Other includes sales for public street and highway lighting, other sales to public authorities, sales to railroads and railways, and interdepartmental sales.  Totals may not equal sum of components because of independent rounding.
-     Source: Energy Information Administration,  Form EIA-861, “Annual Electric Utility Report.”

## Figure 20. Shares of Sales to Ultimate Consumers by Sector, 1992 and 1998

**Figure 20. Shares of Sales to Ultimate Consumers ****by Sector, 1992 and 1998**

-    Notes: Other includes sales for public street and highway lighting, other sales to public authorities, sales to railroads and railways, and interdepartmental sales.  Totals may not equal sum of components because of independent rounding.
-     Source: Energy Information Administration,  Form EIA-861, “Annual Electric Utility Report.”

## Figure 21. Sales to Ultimate Consumers by Class of Ownership, 1992 and 1998

**Figure 21. Sales to Ultimate Consumers ****by Class of Ownership, 1992 and 1998**

-    Note: Totals may not equal sum of components because of independent rounding.
-    Source: Energy Information Administration,  Form EIA-861, “Annual Electric Utility Report.”

## Figure 22. Share of Sales to Ultimate Consumers by Class of Ownership, 1992 and 1998

**Figure 22. Share of Sales to Ultimate Consumers ****by Class of Ownership, 1992 and 1998**

-    Note: Totals may not equal sum of components because of independent rounding.
-    Source: Energy Information Administration,  Form EIA-861, “Annual Electric Utility Report.”

## Figure 23. Status of State Electric Utility 

**Figure 23. Status of State Electric Utility **
**Deregulation Activity, as of July 2000**

-    1Arizona, Arkansas, California, Connecticut, Delaware, District of Columbia, Illinois, Maine, Maryland, Massachusetts, Michigan, Montana, Nevada, New Hampshire, New Jersey, New Mexico, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, Texas, Virginia, and West Virginia.   2New York.   3Alaska and South Carolina.   4Alabama, Colorado, Florida, Indiana, Iowa, Louisiana, Minnesota, Mississippi, Missouri, North Carolina, North Dakota, Utah, Vermont, Washington, Wisconsin, and Wyoming.   5Georgia, Hawaii, Idaho, Kansas, Kentucky, Nebraska, South Dakota, and Tennessee
-    Source: Energy Information Administration,
-  http://www.eia.doe.gov/cneaf/electricity/chg_str/regmap.html.

## Figure 24. Average Revenue per Kilowatthour for All Sectors by State, 1998

**Figure 24. Average Revenue per Kilowatthour ****for All Sectors by State, 1998**

-     kWh = Kilowatthour.
-    Note: The average revenue per kilowatthour of electricity sold is calculated by dividing revenue by sales. Sales in deregulated retail electricity markets are not included.
-    Source: Energy Information Administration, Form EIA-861, “Annual Electric Utility Report.”

## Figure 25. Average Revenue per Kilowatthour for the Industrial Sector by State, 1998

**Figure 25. Average Revenue per Kilowatthour ****for the Industrial Sector by State, 1998**

-    kWh = Kilowatthour.
-    Note: The average revenue per kilowatthour of electricity sold is calculated by dividing revenue by sales. Sales in deregulated retail electricity markets are not included.
-    Source: Energy Information Administration, Form EIA-861, “Annual Electric Utility Report.”

## Figure 26. Relative Average Revenue 

**Figure 26. Relative Average Revenue **
**of Electricity Sales: Ratio of Industrial **
**Consumers to All Consumers, 1960-1998**

-    Source: Energy Information Administration, *Annual Energy Review 1998, *DOE/EIA-0384(98) (Washington, DC, July 1999), Table 8.13.

## Figure 27. Independent System Operators 

**Figure 27. Independent System Operators **
**and Regional Transmission Organizations **
**in Operation or Under Discussion as of April 1, 2000**

-    Notes:  • Creation of regional transmission organizations (RTOs) is currently under rapid development. Under Order 2000, utilities not currently members of an approved ISO must submit plans to join an RTO by October 2000. Utilities that are members of an ISO must submit plans to form an RTO by January 2001. • MAPP and the Midwest ISO have reached an agreement to merge operations. Mountain West is an independent system administrator which is considered an interim organization in a broader regional transition plan.
-    Source: Compiled from information obtained in trade journals and websites maintained by the regional transmission organizations.

## Figure 28. Major Wholesale Electricity Trading Hubs 

**Figure 28. Major Wholesale Electricity Trading Hubs **
**and Centralized Power Markets**

-    Notes: Power trading also occurs at locations not indicated on the map. The New York Mercantile Exchange (NYMEX) has established electricity futures contracts for the Cinergy, COB, Entergy, Palo Verde, and PJM trading hubs. The Chicago Board of Trade has established electricity futures contracts for the ComEd and TVA trading hubs.
-    Source: Electric industry trade journals and Internet websites.

## Figure 29. Concentration of Ownership of 

**Figure 29. Concentration of Ownership of **
**Investor-Owned Utility Generating Capacity, **
**1992 and 2000**

-    Notes: •The 10 largest companies are public utility holding companies that own one or more operating electric utilities.  •The 2000 data assume that all pending mergers will be completed by year-end 2000. •Capacity owned by subsidiaries of IOUs was not counted when computing rankings.
-    Sources: Energy Information Administration, Form EIA-860, “Annual Electric Generator Report,”  Form EIA-860A, “Annual Electric Generator Report – Utility,” and Form EIA-861, “Annual Electric Utility Report.”

## Figure 30. Cumulative Electricity Generation Capacity Additions Through 2020

**Figure 30. Cumulative Electricity Generation**** Capacity Additions Through 2020**

-    Source: Energy Information Administration, *Annual Energy Outlook 2000*, DOE/EIA-0383 (2000) (Washington, DC, December 1999).

## Figure 31. Investor-Owned Electric Utility 

**Figure 31. Investor-Owned Electric Utility **
**Generation Capacity Divested or to be **
**Divested by Census Division, as of April 2000**

-    Note: Nationally, approximately 22 percent of total power generation capacity has been divested or will be divested.
-    Source: Energy Information Administration, Office of Coal, Nuclear, Electric and Alternate Fuels.  Compiled from information in trade journals, newspapers, and Internet websites, 1998 through April 2000.