Electric Power Generation & Distribution NAICS 2211

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Industry Summary
The 2,441 Electric power generation and distribution companies in the US produce and deliver electricity to residential customers, commercial businesses, and industrial operations. The industry consists of publicly-owned utilities, electric co-operatives, investor-owned utilities, and power marketers. Operations are either fully or partially regulated, depending on the state they operate in.
Changes in Environmental Laws and Regulations
Environmental laws and regulations are changing constantly and can have large impacts on electric utilities.
Shift to Natural Gas Generation
Low natural gas prices and restrictions on coal and nuclear plants are causing a shift to natural gas for new generating capacity.
Recent Developments
Jul 21, 2025 - Budget Reconciliation Law to Reduce Clean Energy Investment
- Renewable energy industry insiders expect the tax and policy bill signed into law in early July by President Trump to reduce clean energy investments, according to The Wall Street Journal. The Biden-era Inflation Reduction Act created 30% tax credits for renewable energy projects, either on the development side with Investment Tax Credits (ITC) or for producing clean energy with Production Tax Credits (PTC). The credits were to remain available until 2032. The legislation signed in July sunsets the ITC and PTC for wind and solar projects five years early in 2027. The new law also requires projects to have higher levels of US-derived content and increases restrictions on content from foreign entities of concern (FEOC). Princeton University’s REPEAT Project estimates the new law will reduce US electricity and clean fuels production by $500 billion over the next decade.
- Solar’s share of US electricity generation is expected to grow in 2025 and 2026, according to the US Energy Information Administration’s (EIA) Short Term Energy Outlook. For the summer of 2025, solar is projected to generate 124 billion kilowatt hours (kWh) of power, up 34% compared to the June-September period in 2024. By summer 2026, the EIA expects solar capacity to expand by 34% to 147 billion kWh. The Short Term Energy Outlook forecasts natural gas generation will drop 4% in 2025 amid higher fuel prices but will rise 2% in 2026.
- Since the beginning of 2025, nearly $15.5 billion in clean energy investments have been cancelled, closed, or scaled back, according to a report released in late June by clean energy advocacy nonprofits E2 and the Clean Economy Tracker. Many of the cutbacks came in anticipation of the Trump administration’s goal to claw back some tax credits created during the Biden administration. Clean energy projects have also faced other headwinds, including inflation, high interest rates, and supply chain snarls that affected project timelines, according to The Wall Street Journal. The E2 and the Clean Economy Tracker report said about $450 million was invested in May across five states for solar, EV, grid enhancements, and transmission equipment, but those investments come well short of offsetting the value of project cancellations.
- At the recent Transmission and Interconnection Summit sponsored by Infocast, regional grid operators CAISO, ERCOT, MISO, and SPP said they planned to invest billions of dollars to expand electricity transmission infrastructure, according to PV Magazine. Much of the need for transmission investment is driven by anticipated load growth. However, transmission growth is also needed to bring more low-cost renewable energy to the grid. In 2023, the US Department of Energy estimated that a clean grid would require 54,500 gigawatt-miles of additional inter-region transmission capacity. One summit speaker noted operators are committed to building a larger grid that can accommodate renewables additions, reduce costs for ratepayers, and withstand extreme weather and larger loads.
Industry Revenue
Electric Power Generation & Distribution

Industry Structure
Industry size & Structure
A typical electric power company operates from multiple locations and has revenues of about $230 million per year.
- There are 2,441 firms providing electric power utility services in the US, employing 413,100 workers, and generating annual revenue of $562 billion.
- 58.8% are publicly owned utilities, 25.5% are cooperatives, 5.2% are investor-owned utilities, 9% are power marketers, and 1.6% are either community choice aggregators, behind-the-meter (on-site generation), or federal power agencies.
- Public utilities serve 14.8% of US customers, cooperatives serve 12.9%, investor-owned utilities serve 66%, power marketers serve 4.6%, and behind-the-meter (on-site generation) serves 1.6%.
- 67% of establishments have fewer than 20 employees, and 7% of firms are large with 100 or more employees.
- Large electric power utilities include: Exelon Corp., Southern Co., First Energy, Puerto Rico Electric Power Authority (PREPA), PSEG Long Island, Los Angeles Department of Water and Power (LADWP), Withlacoochee River Electric Cooperative, Cobb Electric Member Corporation and Middle Tennessee EMC.
- Entry into the business as a for-profit enterprise in the distribution business is difficult as most population centers are in franchised territories as designated by the state public utility commission. Entry into the generating business as an independent power producer (IPP) has a lower barrier, requiring only permits and capital for construction and certification by the ISO.
Industry Forecast
Industry Forecast
Electric Power Generation & Distribution Industry Growth

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