Electricity Industry in the U.S - Essay Example

Coal is the leading electricity generating source. In 2013, 39.1% of electricity was generated using coal. Natural Gas was second with 27.4%. The nuclear source contributed to 19.4% of the total electricity generated in that year while renewable sources like solar and wind generation had 12.9%. Other sources of electricity had the least percentage of only 1.2%. Compared to the same data recorded in 2006, the share controlled by natural gases had dropped dramatically from 70%. Nuclear energy was contributed to 20% in 2006 while renewable energy rose from 3% in 2006.

However, the percentage contributed by coal was not shown in 2006. Hence, it could be assumed that a coal production is a form of electricity generation in the US.The electricity industry in the U.S is comprised of several companies and stakeholders that offer services through electricity generation, transmission and distribution. Other industrial players are domestic and commercial market operators besides product sales personnel. A survey conducted in 1996 showed that there were at least 3200 utility firms engaging in power distribution.

Among the 3200 firms, at most 1000 engaged in electricity generation (Only ten were government owned while the rest were private enterprises) (Blume, 2007, p. 83).In the US, electricity transmission is carried out under the supervision of independent system operators and regional transmission firms. The electricity transmitting organization focusses at offering equity services rather than being profit oriented. These utilities and organizations are controlled by public institutions, for example, Department of energy that generates electricity policies and Environmental Protection Policies that develop environmental policies.