This ruling meant changes in the sale of electricity between electric utilities and electricity providers. Invariably, this meant an end to electric utility monopolies. Competition in the electric utility business has spurred firms to concentrate on enhancing customer service. Many utility firms have implimented new programs to assist customers in using their electricity more efficiently. Some utility companies have offered brochures with cost saving tips, on-line monitoring of elecity usage, and consulting services to industrial customers.
Utility companies face slow growing markets and a stringent regulatory environment.
To address these problems, utility companies have atttempted to diversify their operations. In general, utility companies will attempt purchase natural gas and water utilities, geographic expansion, and ancillary services. Each utility company must have a reserve margin of extra production capability to allow for maintenance, equipment outages, and unexpected variations in usage. Hotter temperatures cause customers to use their air conditioners more which subsequently causes a boost to utility company earnings. However ,colder weather tends to have a marginal impact on earnings.