Before Electric Industry Consolidation

Deck: 

In New York City, as many as ten privately-owned utilities provided service.

Today in Fortnightly

The lead article in the June issue of Public Utilities Fortnightly, by Tom Flaherty and Owen Ward, tells the story of the electric industry's consolidation. The impact on the number and size of companies has been extraordinary.

Let's go back in time, to well before the consolidation of the last 20 years.

Take a look at the 1925 NELA Rate Book, published 91 years ago. NELA, the National Electric Light Association, was the Edison Electric Institute of its day.

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In 1925, NELA reports that there were 396 privately-owned electric utilities. Plus 38 electric utilities were municipally-owned. There were no rural electric cooperatives eight years before the New Deal.

In 341 cities, defined as having a population of 20,000 or more, a single privately-owned utility provided electric service. One utility per city is still typical. 

But in 13 cities including San Francisco, New Orleans and St. Louis, two privately-owned utilities provided service. Two utilities splitting a city. Pretty unusual. 

And in New York City, as many as ten privately-owned utilities provided service. Ten?

In 17 cities including Los Angeles, Kansas City, Cleveland and Seattle, one privately-owned utility and one municipally-owned utility provided service. So again we have two utilities splitting a city. 

In Lincoln, Nebraska, two privately-owned utilities and one municipally-owned utility provided service. That's three utilities splitting a city.

In the 20 remaining cities, a single municipally-owned utility provided service. The cities included Jacksonville and Austin that are municipals to this day.

In 1925, in three of the 48 states, there were no cities with populations of 20,000 or more. Which states? Nevada, New Mexico and Wyoming. 

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And in 1925, the first issue of Public Utilities Fortnightly was four years in the future.

Steve Mitnick, Editor-in-Chief, Public Utilities Fortnightly

E-mail me: mitnick@fortnightly.com