Independent/Merchant Power Production Industry Overview

Companies that engage in the generation of electricity for sale in deregulated markets.

Full Independent/Merchant Power Production Industry Description

Consolidation

Use of Renewable Sources

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.

Issues concerning safety (nuclear); long-term cost (petroleum and natural gas); and greenhouse gases (coal) are complicating and making more expensive the approval process for new power plants. Federal and state legislatures are actively encouraging development of electric power from wind, solar, geothermal, and hydro sources. A number of states have set capacity targets for the amount of power produced using renewable sources.

Full Independent/Merchant Power Production Industry Trends

• Allegheny Energy Supply Company, LLC
• Altek Power Corporation
• Americas Power Partners, Inc.

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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 Independent/Merchant Power Production maps to a number of NAICS codes including:

Full Independent/Merchant Power Production Industry Codes

• American Gas Association
  
• American Public Power Association
  
• Electric Power Supply Association
  

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