⚡ The Electrical Grid: A Network of Power ⚡
The Grid's Major Components
Generation
Electricity is produced at power plants using energy sources such as fossil fuels, nuclear, hydro, wind, or solar. This is where the power originates.
Transmission
Electricity is transmitted over long distances at high voltages (e.g., 110–765 kV) to reduce energy loss due to resistance in the wires. Higher voltage allows more efficient transport of electricity with less heat loss.
Distribution
Near the point of use, the high voltage is stepped down using transformers to lower, safer voltages (e.g., 4–25 kV for local distribution, and 120/240V for homes and small businesses). Lower voltage is safer for consumers and compatible with end-use equipment.
Key Entities Operating and Using the Grid
Power Generators
Companies or public utilities that operate power plants and produce electricity from various sources (e.g., gas, coal, nuclear, hydro, wind, solar). They are the origin point of electricity.
New England Resources:
Transmission & Distribution Utilities
These companies own and operate the physical infrastructure (lines, substations) that move electricity from generators to consumers. They are the backbone of power delivery.
New England Resources:
- Eversource Energy (CT, MA, NH)
- National Grid (MA, RI, NH)
- Central Maine Power (ME)
- Green Mountain Power (VT)
Independent System Operators (ISOs) / RTOs
Nonprofit entities that operate the grid and manage wholesale electricity markets across large regions. They ensure reliability, balance supply/demand, and coordinate market access. Think of them as the grid's air traffic controllers.
New England Resource:
Retail Electricity Providers / Utilities
Companies that sell electricity directly to end users, manage billing, metering, and provide customer service. In some markets, they are separate from the delivery utilities. They are the direct link to the consumer.
New England Resources:
- MA DPU Electric Supply
- CT PURA Electric Supplier
- Search your state's PUC for more.
Regulators
Government bodies like FERC (federal) and state PUCs (public utility commissions) that oversee market rules, grid reliability, utility performance, and consumer protection. They provide oversight.
Consumers (End Users) / Prosumers
Residential, commercial, and industrial users of electricity. Some are now "prosumers" – producing electricity (e.g., via solar panels) and feeding it back into the grid. They are the ultimate demand for power.
New England Prosumer Resources:
- DSIRE (State Incentives)
- Eversource Solar Info (CT example)
- Check your local utility for interconnection policies.
Market Structures: Regulated vs. Deregulated
Regulated Market 🏛️
In a regulated electricity market, a single utility company controls all aspects of electricity service—generation, transmission, distribution, and retail. Prices are set by government regulators (like PUCs) to ensure fairness and reliability. This model prioritizes stability and consumer protection through oversight.
Deregulated Market ⚖️
In contrast, a deregulated market separates generation and retail from transmission and distribution. This allows multiple competing electricity providers to sell power to consumers, who can choose their supplier. Prices are determined by supply and demand, which can drive innovation and lower costs but may also expose consumers to greater price volatility.
U.S. Electricity Market Status by State
Fully Deregulated ⚡
- Texas (ERCOT)
- Illinois
- Ohio
- Pennsylvania
- New York
- New Jersey
- Maryland
- Massachusetts
- Connecticut
- Delaware
- Maine
- New Hampshire
- Rhode Island
Partially Deregulated 🌓
- California (limited retail choice and community choice aggregation)
- Michigan (limited to ~10% load)
- Virginia (limited commercial choice)
- Arizona (partial)
- Nevada (partial)
Fully Regulated 🔒
- Alabama
- Alaska
- Florida
- Georgia
- Hawaii
- Idaho
- Indiana
- Iowa
- Kansas
- Kentucky
- Louisiana
- Mississippi
- Missouri
- Montana
- Nebraska
- New Mexico
- North Carolina
- North Dakota
- Oklahoma
- Oregon
- South Carolina
- South Dakota
- Tennessee
- Utah
- Vermont
- Washington
- West Virginia
- Wisconsin
- Wyoming
This infographic provides a simplified overview. The actual interactions within the electrical grid are highly dynamic and complex.