Power Transmission Of Electric Utilities

1784 Words8 Pages
Electric Utilities are a vital industry to the overall economy, and to our very way of life. Keeping the lights on, is for many people, the reason they go to work, that along with food, and other necessities. Therefore these companies serve a very important role, and just like other industries there is competition. Specifically, for our purposes, the electric utilities industry I’m going to focus on is the transmission of power from a generator, to a distribution center, another utilities company, or the final consumer. The key economic drivers, in this industry revolve, as always, around demand. Therefore consumption, number of households, price of electricity, manufacturing capacity and public capital investments are all derived from the demand coming from the end users, in the economy (IBISworld). These metrics are a result of a heavily regulated market, in which the consumers, and therefore its agent, the government, hold most of the power in this industry. Electric power transmission is a mature industry in the United States, and its projected growth over the next ten years is a modest 1.2% (Morningstar). This industry will be examined as a whole and then comparatively, as I inspect companies performing in this sector and their relative performance. EXTERNAL ENVIORNMENT When assessing the external environment of the electric utilities industry, a PESTLE analysis is appropriate to determine significant external factors affecting this industry (Vrabac). Of these PESTLE
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