The public utility field encompasses a wide range of companies that provide essential services to the public. These include electric, gas, and water utilities, as well as telecommunications and transportation providers. While each type of company has its own specific area of operations, all of them play a vital role in keeping our society running smoothly.
In this article, I’ll introduce you to some major names in the public utility industry. Discover what they do, how they began, and what sets them apart from competitors. Let’s dive in!
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1. American Electric Power
American Electric Power (AEP), based in Columbus, Ohio, stands as one of the United States’ largest public utility companies. AEP serves over five million customers across 11 states, employs more than 17,000 individuals, and generates over $10 billion annually.
AEP started in 1906 as the American Gas and Electric Company (AG&E). Over time, it grew by acquiring smaller utilities and expanding its service area. In 1952, AEP changed its name to emphasize its focus on electric power generation and delivery.
Today, AEP is a Fortune 500 company dedicated to providing safe, reliable, and affordable electricity. They operate a diverse fleet of electric generating plants, including coal, natural gas, nuclear, and hydroelectric facilities. As one of the largest electricity transporters in the USA, they ensure consistent energy delivery.
2. Pinnacle West Capital Corporation
Pinnacle West Capital Corporation, based in Arizona, owns and operates electric utility companies. Its subsidiaries include the Arizona Public Service Company (APS), the largest electricity provider in Arizona, and Bright Canyon Energy, which builds and operates solar infrastructure in the electric energy sector.
Pinnacle West started in 1985 as the Arizona Power Company, succeeding the Arizona Public Service Company. In 1987, it rebranded to Pinnacle West to show its expanding interests beyond electric utilities.
Today, Pinnacle West is an S&P 500 company traded on the New York Stock Exchange. The current chairman and CEO is Jeffrey B. Guldner. With over 6000 employees, it generates $3.5 billion in annual revenues (2017).
3. Duke Energy
Duke Energy Corp., based in Charlotte, North Carolina, stands as one of the largest natural gas and power holding companies in the U.S. Serving 7.2 million customers across several states, the company employs over 27,000 people and generates more than $21 billion annually.
Duke Energy, established in 1904 under a different name, became Duke Power in 1924. It gained prominence in 1927 by merging with several other energy companies. Throughout the early 20th century, it expanded by acquiring smaller utilities and growing its service area.
In 1997, CP&L merged with Duke Power to create Duke Energy. Now, Duke Energy ranks 145th on the Fortune 500 and is a top electricity provider in the U.S. Its subsidiaries include Duke Energy Carolinas, Duke Energy Progress, and Duke Energy Florida.
4. Edison International
Edison International is one of the oldest publicly traded electric utilities in the United States. Based in Rosemead, California, it serves over 15 million customers across various states. With a workforce of more than 12,000 and generating over $12 billion in annual revenues as of 2013, they held total assets of $41.44 billion the same year.
Edison International started as the Southern California Edison Company (SCE) in 1909 and became Edison International in 1996. It’s the successor to Thomas Edison’s Edison Electric Company, founded in 1892.
As the largest electric utility in California, Southern California Edison (SCE), a subsidiary of Edison International, ranks among the biggest in the U.S. Edison International also owns subsidiaries like Edison Energy, Edison Mission Energy, Walnut Creek Energy, and Mountain Wind Power.
5. AT&T
AT&T Inc. is an American multinational company based in Whitacre Tower, Downtown Dallas, Texas. As the third largest mobile phone service provider in the U.S., it also offers broadband subscription TV services. AT&T ranks second in pay TV services, following Comcast.
AT&T started as Bell Telephone Company by Alexander Graham Bell in 1875. This was the world’s first telephone company. In 1994, it became American Telephone and Telegraph Company (AT&T).
AT&T, the largest telecom company by revenue, ranks 13th on the Fortune 500 list of top U.S. corporations. In 2021, it generated $168.86 billion in revenue and held $551.62 billion in total assets. As of 2022, they employ over 203,000 people.
6. Southern Company
Southern Company is an American electric and gas utility based in Atlanta, Georgia. They rank as the second-largest utility by customer base in the U.S., serving nine million customers through subsidiaries. In 2018, they generated approximately US$23.5 billion in revenue.
Southern Company serves Alabama, Georgia, Illinois, Mississippi, Virginia, and Tennessee. With around 31,000 employees, it’s ranked 126th on the Fortune 500 list. Publicly traded since September 30, 1949, it now has about 500,000 shareholders.
The Southern Company, originally Southeastern Power & Light in 1924, now covers 310,000 km² across several US states. It includes notable subsidiaries like Georgia Power, Alabama Power, Southern Company Services, Southern Linc, PowerSecure, and Atlanta Gas Light.
7. American Water Works
American Water Works Inc. is the largest publicly traded water and wastewater utility company in the U.S., serving about 24 million people. Headquartered in Camden, New Jersey, the company employs over 6,000 people.
The American Water Works started in 1886 as the American Water Works & Guarantee Company. It changed to American Water Works and Electric Company in 1914 and American Water Works Inc. in 1947. The company has multiple subdivisions for easier management.
In 2021, the company had revenue of US$3.93 billion and total assets of US$26.08 billion. They own many water treatment plants, groundwater wells, dams, pumping stations, and water storage facilities.
8. Essential Utilities Inc
Essential Utilities Inc is an American water and wastewater utility company, formerly known as Aqua America until 2020. Founded in 1886 as Springfield Water Company, and headquartered in Bryn Mawr, Pennsylvania, they provide drinking water and wastewater treatment infrastructure services.
The company, now named Essential Utilities, runs in many U.S. states like Ohio, New Jersey, Illinois, Indiana, Pennsylvania, Virginia, Texas, and North Carolina.
The company employs about 3100 people. In 2021, they generated a revenue of US$1,878M. Aqua Pennsylvania is their largest subsidiary. Aqua Resources, Inc., their non-utility subsidiary, operates without regulation.
9. Pacific Gas & Electric Company
Pacific Gas & Electric Company (PG&E) is an investor-owned public utility supplying natural gas and electricity to much of northern and central California. It serves electricity to 5.2 million homes in the state.
Based in San Francisco, California, PG&E is part of PG&E Corporation. Founded in 1905, it serves California, one of the most populous U.S. states. PG&E is ranked 168 on the Fortune 500 list of largest U.S. companies.
PG&E focuses on various energy sources like hydroelectric, nuclear, solar, and combustion. In 2021, the company’s revenue reached US$20.64 billion, with total assets of US$103.3 billion.
10. Verizon
Verizon Communications Inc., an American broadband and telecommunications company, was founded in 1983 as the successor to Bell Atlantic Corporation. Headquartered in New York City, it offers services to both residential and commercial customers.
Verizon ranks among the top 3 largest wireless carriers in the United States, boasting about 143 million subscribers as of Q1 2022. It’s also a major player in landline telephone services in the country.
The company has several subsidiaries, such as BlueJeans, Visible, Skywalk, Verizon Connect, and Verizon Fios. By 2021, it employed about 118,000 people and earned $133.61 billion in revenue. In 2022, Verizon ranked 54th on the Fortune 500 list.