Utilities
NAICS 22 Utilities: electric, gas, and water sector structure, regulation, major companies, and grid transition trends.
Industry at a Glance
Sector-wide aggregates across all businesses classified under NAICS 22 (2017 classification frame). For specific sub-industries within this sector, see the individual reports below.
Industry Overview
NAICS 22 covers establishments that generate, transmit, and distribute electric power, natural gas, steam, water, and sewage services. The sector operates under a dual regulatory structure: the Federal Energy Regulatory Commission (FERC) governs interstate transmission and wholesale electricity markets, while state public utility commissions set retail rates and approve capital plans. Investor-owned utilities—led by NextEra Energy, Duke Energy, and Southern Company—serve roughly 72% of US electricity customers, with the remainder split among municipal utilities, rural electric cooperatives, and federal power agencies like the Tennessee Valley Authority (TVA) and the Bonneville Power Administration. Electric power generation is undergoing a structural shift: coal's share of the generation mix has fallen below 17%, while renewables (wind and solar) now exceed 20%, driven by state Renewable Portfolio Standards (RPS) adopted in over 30 states. Natural gas distribution is dominated by regional operators such as Atmos Energy and Southern Union, operating under separate state commission oversight. Water and wastewater utilities remain the most fragmented subsector, with over 50,000 community water systems nationwide, though consolidation by companies like American Water Works is concentrating market share in the investor-owned segment.
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Market sizing, workforce analysis, competitive landscape, regulatory environment — all sourced from Census, BLS, FRED, and SEC EDGAR.
Industry Trends
Utility-scale solar and battery storage costs have fallen enough to undercut new natural gas peaker plants in most US markets, accelerating capacity additions—NextEra Energy alone plans over 30 GW of renewables and storage additions through 2027.
FERC Order 2023 reformed the interstate transmission interconnection queue process to address a backlog exceeding 2,000 GW of proposed generation projects, mostly wind and solar, that had been stalled by procedural delays averaging four to five years.
Data center power demand is emerging as the fastest-growing load category, with hyperscale operators like Amazon Web Services and Microsoft contracting directly with utilities for dedicated capacity in Virginia's Dominion Energy territory and across the ERCOT grid in Texas.
State-level electrification mandates—California's ban on new gas furnace and water heater sales by 2030, and New York's All-Electric Building Code for new construction by 2026—are shifting gas utility planning toward managed load decline and potential asset stranding.
Physical grid hardening against extreme weather is commanding record capital budgets, with Florida Power & Light investing billions in undergrounding distribution lines and PG&E deploying sectionalizing switches and covered conductor to reduce wildfire ignition risk in California.
Available Reports
2 industry reports available for purchase under Utilities.
Specialty Reports Available on Request
14 specialty industriesavailable on request▾
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