 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
had 549,000 wage and salary jobs in 2006. 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 2006, electric power
generation, transmission, and distribution plants employed an average of
about 49 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, the majority
of utilities jobs were in establishments with 100 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
 Employment
in utilities is expected to decline, but many job openings will arise
because large numbers of many workers in the industry are approaching
retirement age and will need to be replaced.
Wage and salary employment in utilities is expected to decline 6 percent
between 2006 and 2016, compared with an increase of about 11 percent for
all industries combined. Projected employment change varies by industry
segment, as shown in table 4. Although electric power, natural gas and
water continue to be essential to everyday life, employment declines
will result from the retirement of much of the industry's workforce.
While utilities are doing what they can to replace these workers, the
wide variety of careers open to people with technical skills will make
it difficult for companies to find enough applicants to fill these
openings. Utilities will be forced to further automate their systems,
negotiate part-time status with retirees and contract with employment
services to make up for the difference between the desired number of
employees and the number of workers actually available.
Reorganization of
electric utilities has increased competition and provided incentives for
improved efficiency. This has resulted in extensive cost-cutting and a
number of mergers, which have led to a decline in employment over the
past several years. This has been accomplished by a combination of
layoffs and hiring freezes, which have resulted in an older workforce
than in most other industries. Because electric utilities tend to be
particularly labor intensive and require technically-minded people who
are in high demand in other industries, they will have the most
difficulty recruiting enough replacements. Worker attrition will be
managed by further automation of systems and more responsibility for
workers.
In the gas transmission and distribution industry, regulatory changes
have made it possible for wholesale and even some retail buyers to
choose their own natural gas providers. While distributors still
maintain local monopolies, they are highly regulated and are not allowed
to mark up the wholesale price of natural gas. Their revenues are based
on distribution fees, which vary based on infrastructure needs rather
than actual use of natural gas. These regulatory changes have resulted
in several mergers and an emphasis on cost-cutting. As in the area of
electric power, this has led to hiring freezes which have resulted in an
older workforce. As these people retire, there will not be enough
applicants to replace them, forcing the industry to find new ways to
fill its needs.
In the water and sewage systems industries, regulatory changes have had
the opposite impact. While most water systems remain locally-operated
and fairly small in scale, water quality standards for both drinking
water and disposal of wastewater have been increased for public health
and environmental reasons. While hiring freezes have been less common in
water than in other parts of the industry, much of the water workforce
is nearing retirement age. Water and sewage systems services are
projected to grow slightly, as water systems are expanding rapidly
despite the difficulty in securing workers. Employment is projected to
increase 18.7 percent from 2006 to 2016.
Job prospects for qualified applicants entering the utilities industry
are expected to be excellent during the next 10 years. As of 2006, about
55 percent of the utilities industry workforce is over the age of 45
(table 5). Many of these workers will either retire or prepare to retire
within the next 10 years. Because on-the-job training is very intensive
in many utilities industry occupations, preparing a new workforce will
be one of the industry's highest priorities during the next decade.
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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