The continuing energy problems plaguing the state of California has prompted a request to Research and Planning to compare the electrical distribution systems of the two states. This report will provide some background on Californiaacute;s current crisis, an overview of Missouri´s current electrical energy environment, and a comparison between the two states
Much of the debate surrounding electric utilities is related to restructuring the traditional way most consumers have received their electric service. Today, most regulated utilities are considered vertically integrated. That means they own or operate all of the three basic functions of providing electricity to consumers: generation, transmission and distribution.
Generation is the facility where electricity is produced. Transmission is the system that moves large amounts of high voltage electricity from the production point to distribution facilities. The distribution system includes the wires, transformers, substations and other equipment used by local utilities to deliver smaller voltages of electricity to individual consumers.
Utilities generate or purchase electricity and resell it through established rates. Electric rates include generating costs, repayment of equipment and facility purchases, the cost of delivering electricity across the transmission and distribution systems, and a return on the company's investment.
Under restructuring, choice would be created for the generation portion of the delivery system. Customers could choose among a number of power generators or marketers offering different electric supply options and rates. Supply options could include "green power" (cleaner resources like wind, hydro, biomass or solar power), and traditional types of power generation like nuclear, natural gas, steam or coal. The current local utility would still be responsible for transmitting and distributing electricity, but restructuring would offer consumers a choice in electric supply. Consumer bills would be unbundled to show the expense for each portion of electricity delivery (generation, transmission and distribution).
