Reliable electricity service is an expectation of homeowners and business owners and the electricity industry is working to meet those needs as it transitions toward a competitive wholesale and retail environment. It is expected that competitive electricity markets will prompt more investments in new and innovative ways to provide electricity service to meet the growing demands of customers.

Evolving markets are continuing to innovate by introducing new technologies and generation methods that will supply electricity service at a rate that exceeds the anticipated peak demand. The additional supply of electricity is needed for assurance that in the event of unexpected events like equipment outages that cause an interruption in electricity service.

The United States has a total grid connected generation capacity of slightly more than 1,000,000 Megawatts (1,000 gigawatts). Many companies and factories generate their own supply of electricity. To that end there are an additional 8,000 megawatts of privately owned generators that are not connected to the grid, and 12,000 megawatts of privately owned generators that are connected to the grid.

Companies that provide electricity service have not determined the precise percentage level which would be considered adequate for the electric generating capacity margins to guarantee electricity at all times and under varying conditions. These capacity margins which impact supply and demand of electricity can be affected by the availability of electricity service due to equipment failure and by unexpected electricity usage by customers. Extreme weather conditions including wind, rain, snow, ice and extreme temperatures can cause unexpected and sometimes extended interruptions in electricity service.

Prior to changes in the electricity industry which ushered in the era of deregulations, capacity margin calculations were traditionally considered a part of long-term planning for electricity utilities. Electric companies ensured that enough supply would be available under typical adverse events which might interfere with service. Following deregulation, investor-owned utilities have divested their generating assets. Suppliers of electricity are no longer responsible for capacity planning as they were in the past when all energy was regulated. Supply additions, therefore, may or may not keep pace with the growth in demand.

It is important to know that electricity cannot be stored by the national electricity grid. Every time there is a demand for electricity a generating plant somewhere begins generating supply to meet the needs. Operations centers and sophisticated computer systems throughout the country balance to supply electricity on demand.

Since electricity cannot be stored, control of supply is critical. Electricity companies must have the ability to increase supply as demand increases but reduce supply as demand decreases. This is done in real time and the need for this control has a significant impact on alternative electricity generating sources such as wind power.

Power plants are only efficient and profitable when running at or near their capacity. This motivates electricity companies to supply more than one kind of generation capacity. Electricity companies maintain many, many small power generators called “peaking plants” to assist in supplying excess electricity during peak load hours during the late afternoon and early evening hours to avoid electricity service lapses.

For additional information on electricity service as well as how to switch electricity companies or finding a local power company visit us online.

Please visit us online at http://www.mxenergy.com for all your energy needs.

Author Bio: For additional information on electricity service as well as how to switch electricity companies or finding a local power company visit us online.

Category: Advice
Keywords: electricity service,electric supplier,utility provider,energy,power company,natural gas