An electric utility , or a power company , is a company in the electric power industry (often a public utility ) that engages in electricity generation and distribution of electricity for sale generally in a regulated market . The electrical utility industry is a major provider of energy in most countries.
21-604: The Electric Power Development Co., Ltd. ( 電源開発株式会社 , Dengen Kaihatsu Kabushiki-gaisha ) , operating under the brand name J-POWER , formerly Denpatsu ( 電発 ) , is an electric utility in Japan . It mainly produces electricity from coal and hydroelectric power stations. It also has a few wind farms and is currently building a nuclear plant in Ohma , Aomori prefecture, that is scheduled to begin operations in November 2014. J-Power
42-578: A comprehensive energy efficiency program that included incentives for energy conservation in buildings and created efficiency standards for appliances. The EPAct directed the federal government to decrease energy consumption in federal buildings when feasible, and to integrate the use of alternative fuel vehicles in federal and state fleets. There are separate sections dedicated to coal, oil, natural gas, and nuclear energy detailing clean energy incentives, research & development strategies, conservation goals, and responsible management practices. Title III of
63-457: A five year program in accordance with the Spark M. Matsunaga Hydrogen Research, Development, and Demonstration Act of 1990 for the distribution, production, storage, and utilization of hydrogen. EPACT92 was far reaching in the impacting electric power deregulation , building codes and new energy efficient products. The act was also responsible for the mandate of low flush toilets and outlawing
84-535: A great deal of private investment. The success in Nicaragua may not be an easily replicated situation however. The movement was known as Energiewende and it is generally considered a failure for many reasons. A primary reason was that it was improperly timed and was proposed during a period in which their energy economy was under more competition. Globally, the transition of electric utilities to renewables remains slow, hindered by concurrent continued investment in
105-474: A number of utilities, which have become Japan's modern electric utility companies. However, in the battered state of post-war Japan, there were few investors out there to put money in these new companies, and certainly not enough to allow for sufficient R&D of power sources that Japan needed to keep up with the demand of power, thus it was decided that the occupied government would specially create an electric company with such capabilities. On September 19, 1952
126-525: Is a United States government act . It was passed by Congress and set goals, created mandates, and amended utility laws to increase clean energy use and improve overall energy efficiency in the United States . The Act consists of twenty-seven titles detailing various measures designed to lessen the nation's dependence on imported energy, provide incentives for clean and renewable energy , and promote energy conservation in buildings. It reformed
147-795: Is also more likely to attract executives experienced in working in competitive environments. In the United States, the Energy Policy Act of 1992 removed previous barriers to wholesale competition in the electric utility industry. Currently 24 states allow for deregulated electric utilities: Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, Texas, Virginia, Arizona, Arkansas, California, Connecticut, Delaware, Illinois, Maine, Maryland, Massachusetts, Michigan, Montana, New Hampshire, New Jersey, New Mexico, New York, and Washington D.C. As electric utility monopolies have been increasingly broken up into deregulated businesses, executive compensation has risen; particularly incentive compensation. Oversight
168-482: Is inherently independent of more traditional sources of energy, the market seems to have a very different structure. In the United States, to promote the production and development of alternative energies, there are many subsidies, rewards, and incentives that encourage companies to take up the challenge themselves. There is precedent for such a system working in countries like Nicaragua. In 2005, Nicaragua gave renewable energy companies tax and duty exemptions, which spurred
189-542: Is the sole operator of the transmission lines connecting the four main islands of Japan. After World War II , as a part of many changes implemented, the Supreme Commander of the Allied Powers ordered the dismantling of Nihon Hassoden K.K. ( 日本発送電株式会社 , Nihon Hassōden Kabushiki-gaisha ) , which at the time provided electricity to all of Japan with a semi-governmental status. This was broken up into
210-458: Is typically carried out at the national level, however it varies depending on financial support and external influences. There is no existence of any influential international energy oversight organization. There does exist a World Energy Council, but its mission is mostly to advise and share new information. It does not hold any kind of legislative or executive power. Alternative energy has become more and more prevalent in recent times and as it
231-669: The Public Utility Holding Company Act of 1935 (PUHCA) to help small utility companies stay competitive with larger utilities and amended the Public Utility Regulatory Policies Act (PURPA) of 1978, broadening the range of resource choices for utility companies and outlined new rate-making standards. It also amended parts of the Federal Power Act of 1935 (Title VII). The act addressed: Title I established
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#1732801667051252-885: The United States Environmental Protection Agency to promulgate radiation protection standards for the Yucca Mountain nuclear waste repository , which had been designated by the Federal government to serve as the permanent disposal site for used nuclear fuel and other radioactive materials from commercial nuclear power plants and U.S. Department of Defense activities. Title XXII in the EPAct authorized tax incentives and marketing strategies for renewable energy technologies in an effort to encourage commercial sales and production. Section 2026 known as Renewable Hydrogen Energy establishes
273-480: The 1992 Energy Policy Act addresses alternative fuels. It gave the U.S. Department of Energy administrative power to regulate the minimum number of light duty alternative fuel vehicles required in certain federal fleets beginning in fiscal year 1993. Title III includes: The United States Department of Energy , which has EPACT92 implementation authority, ruled that diesel-electric or gasoline-electric hybrids are not "alternative fuel vehicles." Section 801 directed
294-637: The Electric Power Development Company (EDPC) was established as a government agency. In 1997, the Japanese government announced the privatization of EDPC, and in 2004, it went public and was listed on the Tokyo Stock Exchange . Electric utility Electric utilities include investor owned , publicly owned , cooperatives , and nationalized entities. They may be engaged in all or only some aspects of
315-475: The French company EDF was the world's largest producer of electricity. An electric power system is a group of generation, transmission, distribution, communication, and other facilities that are physically connected. The flow of electricity within the system is maintained and controlled by dispatch centers which can buy and sell electricity based on system requirements. The executive compensation received by
336-414: The companies themselves cutting corners and costs for profits which has proven to be disastrous in the worst-case scenarios. This placed a strain on many other countries as many foreign governments felt pressured to close nuclear power plants in response to public concerns. Nuclear energy however still holds a major part in many communities around the world. Utilities have found that it isn't simple to meet
357-777: The executives in utility companies often receives the most scrutiny in the review of operating expenses . Just as regulated utilities and their governing bodies struggle to maintain a balance between keeping consumer costs reasonable and being profitable enough to attract investors, they must also compete with private companies for talented executives and then be able to retain those executives. Regulated companies are less likely to use incentive-based remuneration in addition to base salaries. Executives in regulated electric utilities are less likely to be paid for their performance in bonuses or stock options . They are less likely to approve compensation policies that include incentive-based pay. The compensation for electric utility executives will be
378-490: The expansion of fossil fuel capacity. Nuclear energy may be classified as a green source depending on the country. Although there used to be much more privatization in this energy sector, after the 2011 Fukushima district nuclear power plant disaster in Japan, there has been a move away from nuclear energy itself, especially for privately owned nuclear power plants. The criticism being that privatization of companies tend to have
399-407: The industry. Electricity markets are also considered electric utilities—these entities buy and sell electricity, acting as brokers, but usually do not own or operate generation, transmission, or distribution facilities. Utilities are regulated by local and national authorities. Electric utilities are facing increasing demands including aging infrastructure , reliability, and regulation. In 2009,
420-679: The lowest in regulated utilities that have an unfavorable regulatory environment. These companies have more political constraints than those in a favorable regulatory environment and are less likely to have a positive response to requests for rate increases. Just as increased constraints from regulation drive compensation down for executives in electric utilities, deregulation has been shown to increase remuneration. The need to encourage risk-taking behavior in seeking new investment opportunities while keeping costs under control requires deregulated companies to offer performance-based incentives to their executives. It has been found that increased compensation
441-598: The unique needs of individual customers, whether residential, corporate, industrial, government, military, or otherwise. Customers in the twenty-first century have new and urgent expectations that demand a transformation of the electric grid. They want a system that gives them new tools, better data to help manage energy usage, advanced protections against cyberattacks, and a system that minimizes outage times and quickens power restoration. Energy Policy Act of 1992 The Energy Policy Act of 1992 , effective October 24, 1992, (102nd Congress H.R.776.ENR, abbreviated as EPACT92)
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