Energy Dictionary

non-utility

Privately owned entities that generate power for their own use or for sale are called non-utilities.

With the passage of the Public Utility Regulatory Policy Act (PURPA), non-utilities have been promoted as energy-efficient and environment-friendly alternative sources of electricity. The Federal Energy Regulatory Commission (FERC) Order 888 opened the bulk power transmission grid to suppliers other than utilities. As a result, non-utilities diversified into wholesale power supply. Many non-utilities have subsequently purchased generation assets divested by utilities.

The market share of non-utility power in the US has increased from 7% in 1992 to over 12% in 2001.

See also:

PURPA, FERC