 Utilities
 Related
Profiles of
Professionals
Industry
Overview
The simple act of walking into a restroom, turning on the light, and
washing your hands, uses the products of perhaps four different
utilities. Electricity powers the light, water supply systems provide
water for washing, wastewater treatment plants treat the sewage, and
natural gas or electricity heats the water. Some government
establishments do the same work and employ a significant number of
workers; however, information about them is not included in this
statement. Each of the various segments within the utilities sector is
distinctly different.
 Electric
Power Generation, Transmission, and Distribution
This segment includes
firms engaged in the generation, transmission, and distribution of
electric power. Electric plants harness highly pressurized steam or some
force of nature to spin the blades of a turbine, which is attached to an
electric generator. Coal is the dominant fuel used to generate steam in
electric power plants, followed by natural gas, petroleum, nuclear
power, and other energy sources. Hydroelectric generators are powered by
the release of the tremendous pressure of water existing at the bottom
of a dam or near a waterfall. Scientists also are conducting
considerable research into renewable sources of electric power -- including
geothermal, wind, and solar energy.
Natural
Gas Distribution
Natural gas, a clear odorless gas, is found underground, often near or
associated with crude oil reserves. Exploration and extraction of
natural gas is part of the oil and gas extraction industry. Once found and brought to
the surface, it is transported throughout the United States, Canada, and
Mexico by gas transmission companies using pressurized pipelines. Local
distribution companies take natural gas from the pipeline, depressurize
it, add its odor, and operate the system that delivers the gas from
transmission pipelines to industrial, residential, and commercial
customers. Industrial customers, such as chemical and paper
manufacturing firms, account for more than a third of natural gas
consumption. Residential customers who use gas for heating and cooking,
electric utilities, and commercial businesses -- such as hospitals and
restaurants -- account for most of the remaining consumption.
Water,
Sewage, and Other Systems
 Water utilities provide about 100 gallons of fresh, treated water every
day for each person in this country, or close to 40 billion gallons per
day nationwide. Water is collected from various sources such as rivers,
lakes, and wells. After collection, water is filtered, treated, and sold
for residential, industrial, agricultural, commercial, and public use.
Depending on the population served by the water system, the utility may
be a small plant in a rural area that requires the occasional monitoring
of a single operator or a huge system of reservoirs, dams, pipelines,
and treatment plants, requiring the coordinated efforts of hundreds of
people. Sewage treatment facilities operate sewer systems or plants that
collect, treat, and dispose of waste from homes and industries. Other
utilities include steam and air-conditioning supply utilities, which
produce and sell steam, heated air, and cooled air.
Utilities and the
services they provide are so vital to everyday life that they are
considered "public goods" and are typically heavily regulated. Formerly,
utility companies operated as "regulated monopolies," meaning that in
return for having no competition, they were subject to control by public
utility commissions that ensured utilities acted in the public interest
and regulated the rates they were allowed to charge. However,
legislative changes in recent years have established and promoted
competition in the utilities industry. The electric utilities industry,
for example, is currently restructuring in an effort to promote
efficiency, lower costs to customers, and provide users with an
increased number of service options.
Many utility companies
are municipally owned. In the natural gas industry, for example, a large
majority of the distribution companies in the United States are
municipally owned. However, they serve just a fraction of the nationwide
customers. In general, utilities serving large cities have sufficient
numbers of customers to justify the large expenditures necessary for
building plants, and are operated by private, investor-owned companies.
In rural areas, where the small number of customers in need of services
would not provide an adequate return for private investors, the State or
local government funds the plant construction and operates the utility.
 The various segments
of the utilities industry vary in the degree to which their workers are
involved in production activities, administration and management, or
research and development. Industries such as water supply that employ
relatively few workers employ more production workers and plant
operators. On the other hand, electric utilities generally operate
larger plants using very expensive, high technology equipment, and thus
employ more professional and technical personnel.
A unique feature of
the utilities industry is that urban areas with many inhabitants
generally have relatively few utility companies. For instance, there
were about 52,800 community water systems in the United States in 2004
serving more than 272 million people. The 30,000 smallest water systems
served only 5 million people while the 3,900 largest systems served more
than 220 million. Alaska, with a 2004 population about 12 percent of
that of Maryland, had almost 3 times more electric generating plants
than Maryland. These examples show that economies of scale in the
utilities industry allow one or two large companies to serve large
numbers of customers in metropolitan areas more efficiently than many
smaller companies. In fact, some utility companies, predominately
serving large metropolitan areas, offer more than one utility to their
customers.
 Unlike most
industries, the utilities industry imports and exports only a small
portion of its product. In the natural gas industry, for example, this
reflects the fact that the country has a sizable, proven resource base
that can be used economically to meet the country's needs. This is the
result of a National policy that utilities should be self-sufficient,
without dependence on imports for the basic services our country
requires. However, easing trade restrictions, increased pipeline
capacity, and shipping natural gas in liquefied form have made importing
and exporting natural gas more economical. In 2004, about 19 percent of
the natural gas consumed was imported, mostly from Canada. A small
portion of natural gas is exported in liquefied form, primarily to
Japan.
Working
Environment
Electricity, gas, and water are produced and used continuously
throughout each day. As a result, split, weekend, and night shifts are
common for utility workers. The average workweek for production workers
in utilities was 40.9 hours in 2004, compared with 33.5 hours for all
trade, transportation, and utilities industries, and 33.7 hours for all
private industries. Employees often must work overtime to accommodate
peaks in demand and to repair damage caused by storms, cold weather,
accidents, and other occurrences. The industry employs relatively few
part-time workers.
The hazards of working
with electricity, natural gas, treatment chemicals, and wastes can be
substantial, but generally are avoided by following rigorous safety
procedures. Protective gear such as rubber gloves with long sleeves,
nonsparking maintenance equipment, and body suits with breathing devices
designed to filter out any harmful fumes are mandatory for work in
dangerous environs. Employees also undergo extensive training on working
with hazardous materials and utility company safety measures.
Employment
 Utilities
employed about 570,000 workers in 2004. Electric power generation,
transmission, and distribution provided about 7 in 10 jobs. The
diversity of production processes in the utilities industry was
reflected in the size of the establishments that made up the industry.
For example, the electric power and natural gas distribution sectors
consisted of relatively large plants. In 2004, electric power
generation, transmission, and distribution plants employed an average of
about 51 workers per establishment. On the other hand, the water,
sewage, and other systems sector employed an average of only 8 workers
per establishment. Although many establishments are small, most
utilities jobs were in establishments with 50 or more workers.
Degree
Paths into this Industry
Professional and related occupations in this industry include engineers
and computer specialists. Engineers develop technologies that allow, for
example, utilities to produce and transmit gas and electricity more
efficiently and water more cleanly. They also may develop improved
methods of landfill or wastewater treatment operations in order to
maintain compliance with government regulations. Computer specialists
develop computer systems to automate utility processes; provide plant
simulators for operator training; and improve operator decision making.
Engineering technicians assist engineers in research activities and may
conduct some research independently.
Managers and
administrators in the utilities industry plan, organize, direct, and
coordinate management activities. They often are responsible for
maintaining an adequate supply of electricity, gas, water, steam, or
sanitation service.
Industry
Forecast
 Wage
and salary employment in utilities is expected to decline 1 percent
between 2004 and 2014, compared with an increase of about 14 percent for
all industries combined. Although electric power and natural gas are
essential to everyday life, employment declines will result from
improved production methods and technology, energy conservation by
consumers and more efficient appliances, and a more competitive
regulatory environment.
Reorganization of
electric and gas utilities has increased competition and provided
incentives for improved efficiency. For example, nonutility generators
of electricity, such as a major industrial plant operating its own power
generators, are permitted to sell their excess electricity to utilities
at competitive rates. Also, independent power producers can build
electric power generating plants for the sole purpose of selling their
power to utilities. These producers generally build gas-turbine
generating plants, which have lower construction and environmental
costs, employ fewer workers, and, depending on fuel costs, usually can
sell electric power more cheaply than the coal-powered, steam-turbine
generator plants.
New and continuing
energy policies also provide investment tax credits for research and
development of renewable sources of energy and ways to improve the
efficiency of equipment used in electric utilities. As a result,
electric utilities will continue to increase the productivity of their
plants and workers, resulting in a slowdown in employment opportunities.
This slowdown will lead to keen competition for some jobs in the
industry. However, highly trained technical personnel with the education
and experience to take advantage of new developments in electric
utilities should face good prospects for employment.
 In
the water and sewage systems industries, regulatory changes have had the
opposite impact. Regulations in these industries have not been designed
to increase competition, but to increase the number of contaminants that
must be monitored and treated and to tighten the environmental impact
standards of these industries, resulting in increased employment.
Water and sewage
systems services are projected to be the only growing segment of
utilities, with employment projected to increase 21 percent from 2004 to
2014. This segment is expected to grow as a result of an increase in the
amount of waste generated from a growing population. Also, newly
constructed housing developments are more likely to have community water
supplies and waste treatment facilities, increasing demand for these
services.
In general, persons
with college training in advanced technology will have the best
opportunities in utilities industries. Computer systems analysts and
network systems and data communications analysts are expected to be
among the fastest growing occupations in the professional and related
occupations group, as plants emphasize automation and productivity.
Related
Degree Fields
Professional
Associations
Note: Some resources in this section are provided by the US Department
of Labor, Bureau of Labor Statistics.
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