The Electric Utilities and Power Generators industry consists of companies that build, own, and operate their own transmission and distribution lines, and generate and sell their own electricity. Companies in this industry can choose to be either regulated or unregulated. Regulated companies will have to follow specified guidelines by their regulator, including following their pricing mechanism, and in return they are allowed to operate as a monopoly. Companies that choose not to be regulated oftentimes sell their electricity to the wholesale market which includes regulated utilities buyers and other interested parties.
The regulated market generally consists of companies that own and operate every step of the process from generation to retail sale, while the deregulated market is split between groups working on generation and groups working on distribution. The companies in this industry must be reliable and cost-friendly to customers while also being safe for people and the environment. There are different sources of energy for these companies, some of which are renewable such as hydropower, solar, and wind power.