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Companies that sell electricity and/or natural gas to retail customers in deregulated markets.
The largest investor-owned utilities (IOUs) have gained significant market share over the past 15 years, mainly due to consolidation. The 10 largest IOUs own more than 50 percent of total IOU generation capacity. The application of "best practices" encourages consolidation, as does the need for large financial resources to fund more efficient generating capacity.
In response to the large investments required to find and produce oil and natural gas, the big, vertically-integrated producers have become larger, mainly through acquisitions and mergers. Within the transmission segment of the industry, 14 corporations control 85 percent of the pipeline market. Local gas distribution companies are also combining under the umbrella of Public Utility Holding Companies (PUHC), which often includes the operation of electric-generating facilities using natural gas.
Hoover's has developed its own industry classifications to better serve its customers. These classifications are mapped to the North American Industry Classification System (NAICS) and the older U.S. Standard Industrial Classification (SIC) system. The Retail Energy Marketing maps to a number of NAICS codes including:
Using the 2002 Census Bureau Economic Census, Hoover's has generated an industry financial summary for the Retail Energy Marketing industry.