Electric Utility Industry: Types of Customers

• The electric utility industry generates, transmits, distributes, and sells electric power
• This industry ensures electricity is supplied to homes, businesses, and industries

Types of Customers

• Investor-Owned Utilities (IOUs) are privately owned, provide electric utility services, and often operate in multiple states
• They serve residential, commercial, and industrial customers
• PG&E (Pacific Gas and Electric Company) is an example of an IOU
• Municipal Utilities are publicly owned and operated by local governments striving for reliable service and keeping revenues within the community
• They primarily serve residents and local businesses
• LADWP (Los Angeles Department of Water and Power) exemplifies a municipal utility
• Cooperative Utilities are non-profit entities owned by their customers/members
• Each member gets a vote on decisions made by the cooperative
• They often serve rural areas lacking economic feasibility for IOUs or municipal utilities
• Pedernales Electric Cooperative in Texas is an example of a cooperative utility

Role of a Manufacturer's Representative

• A manufacturer's representative ("rep") acts as an independent sales agent for manufacturers, bridging the gap between them and customers
• Reps sell directly to wholesalers, distributors, and retailers, boosting the manufacturer's sales
• Reps manage specific geographic territories to ensure product representation and accessibility
• Reps introduce and promote new products, using industry knowledge and sales skills
• Reps assess client needs to ensure products meet specific requirements
• Reps aim for deeper market penetration and increased sales, using specialized knowledge and participating in trade shows

Challenges in the Electric Utility Industry

• Aging Infrastructure requires utilities to invest significantly to upgrade outdated equipment
• Cybersecurity Threats increase as utilities digitize, risking disrupted operations and compromised data from cyberattacks
• Regulatory Changes cause uncertainty and complicate long-term planning
• Increasing Electricity Demand requires utilities to expand capacity and improve efficiency due to electrification of transportation and industrial processes
• Renewable Integration poses technical and operational challenges to maintain intermittent supply and grid stability
• Environmental Concerns require utilities to reduce carbon emissions and adopt cleaner energy sources

Commercial and Industrial (C&I) Segment

• The C&I segment includes commercial and industrial customers who consume large amounts of electricity and have high energy consumption and unique needs
• C&I customers typically consume >100 megawatt-hours of electricity annually, including manufacturing plants, data centers, and large commercial facilities
• Energy Management is vital due to high energy costs, and utilities provide tailored solutions
• C&I customers require personalized engagement, with utilities assigning dedicated account managers to handle complex energy requirements

Energy Segment

• Generation involves producing electricity from fossil fuels, nuclear, and renewables (solar/wind)
• High-voltage Transmission lines carry electricity from power plants to substations for distribution
• Distribution networks deliver electricity to residential, commercial, and industrial end-users
• Consumption means electrical end-use is for lighting, heating, cooling, and powering equipment

Role of Distributors (WESCO and IRBY)

• WESCO offers electrical products, automation, and control systems to modernize infrastructure
• IRBY supplies transformers, conductors, and protective equipment with services like project management and emergency response
• WESCO leverage energy storage, electrification, renewables and automation expertise to address power delivery challenges and provide supply chain solutions
• IRBY provides strategic planning and dependable services to ensure utilities are equipped to handle challenges
• WESCO helps drive power delivery project efficiency and reliability from design to deployment
• IRBY provides comprehensive project services including warehousing, vendor-managed inventory, and emergency response

Border States Electric

• Border States Electric is a distributor offering a range of products and services, including electrical products
• This distributor provides technical support and innovative solutions for grid resiliency and reliability
• Assistance is provided with project management from design to deployment for efficient power delivery
• Dedicated storm inventory and response teams are available to quickly mobilize resources and restore power during outages
• Customized supply chain solutions include material management and job site delivery

Western United (EUDA Member)

• Western United Electric Supply Corporation is a member of the Electric Utility Distributors Association (EUDA)
• EUDA members are cooperatives/customer-owned distributors
• Non-profits like Western United are owned by their customers/members
• EUDA members pool resources for a large combined inventory, ensuring material availability, especially during emergencies
• EUDA serves rural electric cooperatives, and offer affordable electrical materials
• Known for responsiveness during natural disasters, EUDA provides support to rural electric cooperatives
• EUDA members collaborate to leverage buying power for competitive pricing and essential materials