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Section1 INDUSTRY OVERVIEW The Energy Sector History Frontiers

Sec 1 – Energy Sector $ 224,247,558,000 That’s 224 Billion Dollars………A Year Total Annual Industry Revenues from Sales

Sec 1 – Energy Sector Types of Electric Utility Investor Owned Utilities (IOU’s) Public (Municipals, Regionals etc.) Cooperatives Federal 73.7 % 15.6 % 9.2% 1.5% % of National Sales

Sec 1 – Energy Sector Types of Electric Utility Investor Owned Utilities (IOU’s) Public (Municipals, Regionals etc.) Cooperatives Federal Number of Utilities

Section 1 - History BCE Greeks Thales of Miletus – 600 BCE A mber takes on charges Theophrastus – 300BCE Other materials charge also 1600’s W illiam Gilbert Coins the word ELECTRIC from “electron” Greek for amber Otto von Guericke first machine to produce electric charge - crank driven sulfur ball

Section 1 - History 1700’s Benjamin Franklin- mid 1700’s “Leyden Jar”/Lightning Atmospheric electricity is identical with electrostatic charge produces in laboratory Leyden jar Theory that electricity is a “fluid” contained in all matter and it’s effects are due to an excess or shortage of said “fluid”

Section 1 - History 1700’s continued Joseph Priestly experimentally proved force of charge varied inversely with the square of distance between charges Charles Augustin de Coulomb Invented a torsion balance to accurately measure force of electric charges Faraday Theory of electric lines of force Luigi Galvani Electric current experiment – frog leg muscle contractions Alessandro Volta – 1800 First artificial electrochemical source of electric potential difference an early form of battery

Section 1 - History 1800’s Hans Christian Oersted Demonstrated that a magnetic field exists around an electric current flow Faraday Proved a current flowing through a coil can induce electromagnetically a current in a nearby coil The principle would lead to the development of the transformer James Joule and Hermann von Helmholtz – 1840 Electric circuits obey the law of conservation of energy Electricity is a form of energy James Clerk Maxwell Investigated properties of electromagnetic waves and light and developed theory that the two were identical

Section 1 - History 1800 – early 1900’s Heinrich Rudolph Hertz – 1886 Produced and detected electric waves in the atmosphere Guglielmo Marconi Harness electromagnetic waves to make practical radio Hendrick Antoon Lorentz – 1892 Electron theory Robert Andrews Millikan – 1909 Accurately measured the charge of one electron

Section 1 - History Major Players Thomas Alva Edison (inventor) Developed practical light bulb Developed electric generating system (DC) First large central electric power station in NYC underground distribution – Pearl St. Station Invented the Edison storage battery (alkaline/nickel-iron) high electrical capacity to weight ratio Patented over 1000 inventions during lifetime

Section 1 - History Major Players continued Nikola Tesla (physicist- electrical engineer-inventor) Rotating magnetic field principle/AC induction motors AC transmission system Polyphase AC( alternating current) System patents bought by George Westinghouse in 1885 included dynamos (generators), transformers and motors 1893 Westinghouse uses Tesla’s system to light World’s Columbian Exposition in Chicago 1896 Tesla’s name and patent numbers on Niagara Falls machinery and power plant to supply Buffalo NY 1891 Invented the Tesla Coil (used still in modern electronics) Worked with primitive x-rays, electrical resonance, radio, fluorescent lighting and much more Over 700 patents in his name

Section 1 - History Major Players continued Charles Proteus Steinmetz (electric engineer, mathematician and inventor) Invented commercially successful AC electric motor Developed AC theory ( a new technical language for engineers) calculate and manage values for AC using “complex” numbers Advanced the study of magnetism (hysteresis) applied in the efficient design of electro-mechanical machinery Study and theory of electrical transients (ex. Lightning, switching surges ) Developed a generator that could discharge 10,000 Amps and more than 100,000 volts equivalent to a million horsepower(hp) for 1/100,000 of a second 1922 –Steinmetz Electric Motor Car Co. Over 200 patents

Section 1 - Frontiers For years thought of as one of the most powerful monopolistic enterprises, the electric utility industry since the early 1990’s has been undergoing significant, albeit gradual, structural change Changes underway will lead this iconic industry down a path towards an end that cannot yet be seen At issue in the restructuring of the industry is an increase in the competition in the generation and retail sales components Structurally, this reorganization will change the way electricity is priced, traded and marketed in the USA New technologies in generation, transmission and distribution will combine with infrastructure changes needed to comply with the new business model The challenge will be maintaining reliability and costs to consumers during this reformation while maintaining the goals of reducing environmental degradation and reducing foreign fuel dependence