There’s not a single business out there that can operate without an electric company. In fact, with technology playing such a massive part in our day-to-day lives, we really can’t do anything without electric providers.
The electric utility industry is one of the most important sectors in the United States. It is responsible for delivering electricity to homes and businesses across the country. The fact that all ten of the largest electric utility companies are part of the Fortune 500 is a testament to the size and importance of this industry.
We’re going to take a look at the ten largest electric utility companies in the US. But first, let’s learn a little more about the electricity industry.
When it comes to the largest utility companies in the US, a majority of them are electric. These companies often offer both electricity and natural gas, including all ten of our list of the largest utility companies in the US. Like telecom services, electric utilities are one business expense that can be very complicated to manage.
Many factors contribute to the complexity of the electric industry. For starters, it’s constantly evolving. Once focused on coal as the main means of energy production, the industry is transitioning to more sustainable methods like wind, solar, nuclear, hydroelectric, and natural gas. The need for cleaner energy sources has become apparent, and now these companies are adopting more sustainable methodologies. So when business owners shop around for energy providers, they need to consider the power source.
Another thing that complicates the industry is the fact that there are regulated and deregulated markets. Each state has particular laws relating to the energy market and whether it is regulated or deregulated. So the state you operate in will have a significant effect on what options you have.
In a regulated market, only one utility provider is available to you. That company has a monopoly in that state, and you cannot choose what organization is generating the power you use.
Meanwhile, in a deregulated electricity market, you can choose from third-party companies that offer energy at their own rates. Energy generators typically sell their electricity at a wholesale price to suppliers that act as a middle man. This creates more competition and allows business owners to choose who they want to work with.
Whether you’re limited in a regulated market or have options in a deregulated market, it’s essential to audit your electricity bills continuously. One of the worst mistakes business owners can make is to assume that statements will be accurate, much less cost-efficient. It is up to you to confirm the accuracy of your utility bill, and if you’re skipping this step each month, you’re probably being overcharged.
Many business owners think the best way to save money on electricity costs is by lowering usage. While this is a great place to start, there is another excellent opportunity for savings via auditing. Utilities are governed by highly complex tariffs, and if you’re on the wrong one, then you could be grossly overpaying. Additionally, there can be a number of errors on your monthly invoice, like demand errors, estimated meter reading errors, ratchet errors, multiplier errors, and more.
The biggest consideration you must take when working with electric companies is that invoices won’t always be accurate. While it’s up to you to take control of these errors, companies like P3 Cost Analysts can do the heavy lifting for you.
You may or may not have the luxury of choosing your preferred energy provider. Whether or not you get to make a decision or if you’re stuck with a specific company in a regulated market, it’s important to know how these companies compare with others in the industry.
In the United States, there are around 1,600 electric utility companies! Clearly, we don’t have time to analyze each and every single one of them, so let’s check out the top ten largest energy companies in the US by revenue.
As the nation’s leading energy provider, Exelon serves more than 10 million customers. The company ranks high in customer satisfaction and focuses on modernizing its energy infrastructure. Exelon also works to advance clean and affordable energy through their Climate Change Investment Initiative and other charitable giving.
Serving 8.2 million customers across the south and central United States, Duke Energy is another one of the biggest energy companies in the country. Duke is one of the utility companies leading the way towards eliminating carbon emissions, intending to be net zero by 2050. On top of that, they’re constantly investing in the exploration of zero-emission power generation technologies, including hydrogen and advanced nuclear.
Southern Company takes just as much pride in being a good employer as they do in building the future of energy advancement. They are one of the biggest electric power companies in the country and were named the number two Best Large Employer in America. They’re always looking ahead, with innovations from new nuclear to the deployment of electric transportation and renewables.
Pacific Gas & Electric (PG&E) is one of the oldest electric supply companies, having been around for over a century. They serve 5.5 million electric customers on the West Coast and have nearly as many gas accounts as well. PG&E buys and produces energy and distributes it throughout its Smart Grid, which helps them limit its carbon footprint.
NextEra is the largest of the electricity utility companies by market capitalization. They’re focused on shaping the future through substantial investments in infrastructure and the generation of more wind and solar energy than their competitors. In addition, NextEra is one of the electric supply companies that is truly focused on innovation, with years of research on battery energy storage technology, applications, and uses.
This heavy hitter is another one of the largest electricity utility companies as well as the owner of the largest electricity transmission system in the country. Their 40,000-mile network serves approximately ten percent of the Eastern Interconnection and eleven percent of the Electric Reliability Council of Texas. American Electric Power, or AEP, is also dedicated to sustainability, economic development, and smart infrastructure.
DTE, formerly Detroit Edison, is one of the largest energy companies that focuses on much more than creating and distributing electricity and natural gas. The diversified energy company is also involved with developing and managing energy-related businesses, including non-utility organizations. They strive to go above and beyond for the communities they serve, including through philanthropy, volunteerism, and economic progress.
This parent company is made up of both the regulated utility Southern California Edison and the non-regulated energy services company, Edison Energy. The origins of this company go back to the late 1800s, making it one of the oldest and biggest energy companies in the country. Edison International is committed to sustainability and offers an annual report each year, as well as additional reports related to other important factors such as economic impact, diversity, inclusion, community investment, and more.
Dominion is another energy company with a clear plan to achieve net-zero carbon and methane emissions. They’ve even designated their company vision as becoming the most sustainable energy company in the country. They aim to not only protect the environment but also to empower their people, serve their communities, and of course, create value for their shareholders. Another key focus for Dominion is reliability, and with service at 99.9% functionality, they are one of the most dependable electricity utility companies out there.
Also known as Con Edison, this company is one of the largest investor-owned electric power companies in the country. They offer electric, gas, and steam service to over 10 million people in New York City and Westchester County. In addition, Con Edison has helped over 5,000 buildings convert from oil to natural gas. They also have steam-generating plants, which provide a clean and reliable way for large buildings to heat, air condition, heat water, or sterilize.
Because of the complicated nature of electric utility billing, the best way to save your business money is to work with a company like P3 Cost Analysts. Our team has the industry knowledge and experience to help you navigate utility sourcing and come out on top.
Through our utility auditing services, we can help you save money regardless of whether you’re in a regulated or deregulated market. While those operating in a regulated market may be stuck with one provider, there is still room to find savings. We will comb through your invoices for up to the past three years, depending on your state’s regulations. We will find any overcharges or errors that have been incorrectly charged to your account. Moving forward, we will continue to monitor for errors and ensure maximum savings.
In deregulated markets, we will run a similar invoicing audit to find you savings, but we can also take things one step further. We will act as your energy broker to help you consider all options and secure the best pricing on the market. By determining your organization’s specific needs, we can help you find the right time to lock into a contract with the best rates possible.
The electricity industry is complicated and confusing, not to mention monstrous! Business owners in regulated markets often think they have no opportunity to save money, while those in deregulated markets are overwhelmed with options. The ten biggest energy companies are just the tip of the iceberg!
Luckily, there’s a team of experts at P3 Cost Analysts standing by, waiting to help you save money on your electricity needs today. Let us help you navigate contract rates, understand your options, and reduce your business’s energy costs today.
To get started with P3’s utility expense audit, schedule a free consultation with an expert today!