By A. B Barzam
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Still others are owned by the customers directly or indirectly. 4, which gives overall statistics comparing the typical of electric utilities as discussed here prior to de-regulation. Investor-Owned Utilities Investor-owned utilities (IOUs) are companies owned by stockholders. Although technically an “investor-owned company” could be owned by one or a small group of individuals (investors) who do not trade the stock publicly, regulated utilities are required to be owned via publicly traded stock and to have no single investor dominate ownership.
They are often subject to some amount of regulation and oversight at the state level, at least on a voluntary basis. Electric Membership Cooperatives (EMCs) Cooperative utilities are owned by their customers, at least in theory. During the period when the electric industry was forming, local farmers and businesses in many rural areas of the United States would pool their resources to build a jointly-owned rural electric cooperative system serving their community. Most cooperatives obtained financial support from the United States government, under the Rural Electrification Act of 1936.
As a result, Big State is still a regulated utility that is doing business with the end consumers of electricity in a way broadly similar to how it has always done business with them, rather than as a “wires company” (T&D company). 2) Big State would have no longer done business with those end consumers. Consumers would have bought power from the ESCos, and Big State would have been only a T&D company, its customers being the ESCos and generation companies, its revenues earned from transporting power from their plants to their customers.