Explain Like I'm Five

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Power Networks in the USA (lemmy.ml)

submitted 3 months ago by [email protected] to c/[email protected]

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I know that the US has three or four major electricity networks (East, West, Texas, Hawaii) but I dont understand how they are they are regulated or operated.

In many countries there are generators who produce power, retailers who sell power to retail customers and network operators who 'move' power between generators and consumers either through high voltage or local transmission lines but these roles are separate and you pay a separate fee for the connection/transmission vs the power you buy. Retailers pay to 'move' power from where its produced to where their customers are.

The transmission companies in most cases regulated natural monopolies. Retailers and producers can be the same company.

How does it work in the United States? Does one company own everything in some areas? Do you usually have a choice of energy retailer?

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[–] [email protected] 1 points 3 months ago

A mutual cable / network provider sounds good. How many houses does it cover?

In New Zealand / UK / Spain the network company provides the cables and connections to consumers and retailers/generators who all pay to connect then customers buy their electricity from the chosen retailers - The network companies are relatively large regional operations that are eithe private for profit of trusts (as opposed to coops) all are regulated for a return on capital invested.

With rooftop solar how does the network provider get on balancing demand ? I guess your provider buys electricity at night and sells during the day?