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Understanding Electricity Business
A world with an insatiable appetite for electricity awakens to a new era. Technological advances rapidly expand the possibilities of what electricity can do and how it can be created. Consumers demand access to a continually advancing array of products and services based on the ready availability of reliable electric supply. In some regions, regulated utilities dominate the market and are the only electric providers available to consumers. In others, all customers are free to choose their electric supplier and service providers compete vigorously. Government regulation, once tha stable backbone of the industry, struggles to keep pace with marketplace developments and the conflicting demands of varied market participants. And concerns over environmental impacts create a push to change traditional generation source. Meanwhile, rapidly developing societies across the globe clamor for modern conviniences, causing worldwide demand to double every 25 years. This is today’s electric marketplace.rnIt’s hard to imagine, but just over one hundred years ago Thomas Edison was drawing up the papers to create the Edison Electric Light Company. At that time, the electric lights and motors that Edison would power had yet to be invented. Now our society would scarcely exist as we know it without the ubiquitous movement of electrons known as electricity. As we move ever deeper into the information age, virtually all our activities are dependent on one commodity electricity.rnAnd paralleling our increasing dependence on electricity marketplace marked by rapid change. Market structures that remained stabel for close to one hundred years are being radically transformed. The staid vertically-integrated utility is, in many areas of the world, being forced to separate into distinct generation, transmission, distribution, and retail services companies. Generation and retail services are being opened to competition. In some areas, customers who never thought twice about their electric service now shop for retail suppliers as casually as they do long distance provides. And caught in the wake of this turbulent industry restructuring are the fate of many corporate enterprises, some whose future prosperity suddenly seems to be in question.rnThe technology of electricity continues as well. In the 1990s, the improvement of gas turbine generation technologies enabled competitive generating units to provide electricity more cost-effectively than the vertical utility. Next, wind generation became a viable technology and created opportunities to diversify our generation portfolio with significant amounts of renewable power. And recent technology innovations promise a continued moving target. Possible futures range from a centralized supply based on clean coal or refined nuclear technologies to a distributed supply based on small non-polluting solar cells located at customers’ facilities.rnSuperconductivity may allow us to greatly enhance our current transmission system without building new towers. And smart grid technology that would allow distribution systems to continually communicate with customers and enable new services could revolutionize the distribution industry. The possibilities, it would seem, are endless.rn
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