Electric Power Transmission in the US - Industry Market Research Report

Electric Power Transmission in the US - Industry Market Research Report

  • April 2021 •
  • 53 pages •
  • Report ID: 499235 •
  • Format: PDF
High voltage: Increased electric power consumption will likely support revenue growth

Abstract

Electric Power Transmission in the US

Most electric power utilities operate in regional and local markets, resulting in a low level of market share concentration within the Electric Power Transmission industry. In 2019, the three largest utility companies, Exelon Corporation, Florida Power and Light Company and Southern California Edison Company only hold a small grasp of the market. Although profit margins increased over the past five years, profit growth was concentrated among larger utilities due to large economies of scale, which permit large utilities to significantly expand infrastructure, thus, boosting company revenue.

Key brands drive revenue growth

• The largest operators in this industry participate in the industry through multiple large subsidiaries. Most notably, Exelon Corporation, the largest industry operator, operates in this industry through five subsidiaries, including Baltimore Gas and Electric Company (BGE), Commonwealth Edison Company, PECO and Exelon Transmission Company and Potomac Electric Power Company. Florida Power and Light Company, the second-largest player, is controlled by NextEra Energy Inc.

Consolidation boosts profit

• Over the five years to 2019, large industry operators have completed a series of acquisitions and mergers of small and large competitors to improve their economies of scale and lower costs. Most notably, Exelon Corporation merged with Constellation Energy Group to become one of the largest energy providers in the United States. The merger has significantly expanded Exelon Corporation’s power-generation capacity, enabling it to gain market share in wholesale electricity markets. The merger also brought BGE under Exelon Corporation’s control, further expanding the company’s electric and gas utility business.

Convenience and service diversity drive competition
• Regional utilities compete on convenience, and utilities that can supply gas and telephone services have a competitive advantage. Successful smart grid integration will also be an important basis of competition over the next five years. Operators that implement smart grid technology will receive tax credits, rate increases and more customers.

This industry transmits and distributes electricity from power generators to distribution centers, other electric utilities and final consumers. The transmission system includes lines and transformer stations, while the distribution system consists of lines, poles, meters and wiring that deliver the electricity to final consumers. This industry does not generate electricity.

This report covers the scope, size, disposition and growth of the industry including the key sensitivities and success factors. Also included are five year industry forecasts, growth rates and an analysis of the industry key players and their market shares.
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