Definition: Electric utility
A corporation, agency, or other legal entity that owns and/or operates facilities for the generation, transmission, distribution or sale of electricity primarily for use by the public. Also known as a power provider.
- An electric utility is a company in the electric power industry (often a public utility) that engages in electricity generation and distribution of electricity for sale generally in a regulated market. The electrical utility industry is a major provider of energy in most countries.Electric utilities include investor owned, publicly owned, cooperatives, and nationalized entities. They may be engaged in all or only some aspects of the industry. Electricity markets are also considered electric utilities--these entities buy and sell electricity, acting as brokers, but usually do not own or operate generation, transmission, or distribution facilities. Utilities are regulated by local and national authorities.Electric utilities are facing increasing demands including aging infrastructure, reliability, and regulation.
- Also Known As
- Power provider