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Public
Utilities Nature
of the Industry |
Working
Conditions |
Employment
|
Occupations
in the Industry
Training
and Advancement
|
Job
Outlook
|
Earnings
Significant
Points
- Persons with college training in advanced
technology will have the best opportunities.
- Employment growth and opportunities vary among
segments of the industry.
- Production workers’ earnings are
significantly higher than in most other industries.
Nature of
the Industry
The simple act of walking into a restroom, turning on the light, and washing your hands, uses the products of perhaps four different utilities. Electricity powers the light, water supply systems provide water for washing, wastewater treatment plants treat the sewage, and natural gas or electricity heats the water. Some government establishments do the same work and employ a significant number of workers; however, information about them is not included in this statement. Information concerning government employment in public utilities is included in the Career Guide to Industries statements on Federal Government and state and local government, excluding education and hospitals. Each of the various segments within the public utilities sector is distinctly different.
Electric services. This segment includes firms engaged in the generation, transmission, and distribution of electricity for sale. Electric plants harness highly pressurized steam or some force of nature to spin the blades of a turbine, which is attached to an electric generator. Coal is by far the dominant fuel used to generate steam in electric power plants, followed by nuclear power, natural gas, petroleum, and other energy sources. Hydroelectric generators are powered by the release of the tremendous pressure of water existing at the bottom of a dam or near a waterfall. Scientists also are conducting considerable research into renewable sources of electric power—geothermal, wind, and solar energy. Some municipalities capture combustible gases or burn waste materials at landfills to generate electricity.
Legislative changes have created new classes of firms that generate and sell electricity. Industrial plants often have their own electricity generating facilities, usually capable of producing more than they require. They are called nonutility generators (NUG) and sell their excess power to utilities or to other industrial plants. A type of NUG, termed an independent power producer, is an electricity generating plant designed to take advantage of both industry deregulation and the latest generating technology to compete directly with utilities for industrial and other wholesale customers.
Transmission or high voltage lines supported by huge towers connect generating plants with industrial customers and substations. At substations, the electricity’s voltage is reduced and made available for household and small business use via distribution lines, which usually are carried by telephone poles.
Gas production and distribution. Natural gas, a clear odorless gas, is found underground, often near or associated with crude oil reserves. Exploration and extraction of natural gas is part of the oil and gas extraction industry, covered elsewhere in the Career Guide to Industries. Once found and brought to the surface, it is transported throughout the United States, Canada, and Mexico by gas transmission companies using pressurized pipelines. Local distribution companies take natural gas from the pipeline, depressurize it, add its odor, and operate the system that delivers the gas from transmission pipelines to industrial, residential, and commercial customers. Industrial customers, such as chemical and paper manufacturing firms, account for nearly half of natural gas consumption. Residential customers who use gas for heating and cooking, electric utilities, and commercial businesses—such as hospitals and restaurants—account for most of the remaining consumption.
Water supply. Water utilities provide over 100 gallons of fresh, treated water every day for each person in this country, or about 40 billion gallons per day nationwide. Water is collected from various sources such as rivers, lakes, and wells. After collection, water is filtered, treated, and sold for residential, industrial, commercial, and public use. Depending on the population served by the water system, the utility may be a small plant in a rural area that requires the occasional monitoring of a single operator or a huge system of reservoirs, dams, pipelines, and treatment plants, requiring the coordinated efforts of hundreds of people.
Sanitary services. This segment includes sewage and refuse systems. Sewage systems collect wastewater from homes and industries, treat it, and return clean water to the surface water supply. Wastewater treatment plants are similar to water treatment plants, although the treatment processes and regulatory requirements are generally more complicated, especially in the case of industrial wastes.
Refuse systems collect and dispose of household garbage—called municipal solid waste—and refuse from commercial and industrial establishments by processing or destroying it through the operation of waste treatment plants, landfills, recycling plants, and incinerators. An increasing proportion of refuse is either recycled or burned to generate electricity.
Other utilities include steam and air-conditioning supply utilities, which produce and sell steam and cooled air; and irrigation systems, which operate water supply systems primarily for irrigation.
Combination utility services. Utilities are classified as combination utilities when they are involved in both the production of electricity and the distribution of natural gas, telecommunications, or some other utility service. They are considered either electric-combined or gas-combined services, depending on which service makes up the majority of their business. Combination utilities usually are located in large metropolitan areas.
Utilities and the services they provide are so vital to everyday life that they are considered “public goods” and are typically heavily regulated. Formerly, utility companies operated as “regulated monopolies,” meaning that in return for having no competition, they were subject to control by public utility commissions that ensured utilities acted in the public interest and regulated the rates they were allowed to charge. However, legislative changes in recent years have established and promoted competition in the utilities industry. The electric utilities industry, for example, is currently restructuring in an effort to promote efficiency, lower costs to customers, and provide users with an increased number of service options.
Many utility companies are municipally owned. For example, of the roughly 2,000 gas distribution companies in the United States, about 1,000 are municipally owned. In general, utilities serving large cities have sufficient numbers of customers to justify the large expenditures necessary for building plants, and are run by private, investor-owned companies. In rural areas, where the small number of customers in need of services would not provide an adequate return for private investors, the State or local government funds the plant construction and operates the utility.
The various segments of the utilities industry vary in the degree to which their workers are involved in production activities, administration and management, or research and development. Industries such as water supply that employ relatively few workers employ more production workers and plant operators. On the other hand, electric utilities and combination utilities generally operate larger plants using very expensive, high technology equipment, and thus employ more professional and technical personnel.
A unique feature of the utilities industry is that urban areas with many inhabitants generally have relatively few utility companies. For instance, there were about 54,000 community water systems in the United States in 2000 serving roughly 264 million people. The 45,900 small water systems served only 26 million people while the 8,100 largest systems served almost 238 million. Alaska, with a 2000 population about 10 percent of that of Massachusetts, had about 3 times more electric generating plants than Massachusetts. These examples show that economies of scale in the utilities industry allow one or two large companies to serve large numbers of customers in metropolitan areas more efficiently than many smaller companies.
Unlike most industries, the utilities industry imports and exports only a small portion of its product. In the natural gas industry, this reflects the fact that the country has a sizable, proven resource base that can be used economically to meet the country’s needs. This is the result of a National policy that utilities should be self-sufficient, without dependence on imports for the basic services our country requires. However, easing trade restrictions, increased pipeline capacity, and shipping natural gas in liquefied form have made importing and exporting natural gas more economical. In 2000, about 16 percent of the natural gas consumed was imported, mostly from Canada. A small portion of natural gas is exported in liquefied form, primarily to Japan.
Working
Conditions
Electricity, gas, and water are produced and used continuously throughout each day. As a result, split, weekend, and night shifts are common for utility workers. The average workweek in utilities was 41.7 hours in 2000, compared with 34.5 hours for all industries, and 38.5 hours for all transportation and public utilities. Employees often must work overtime to accommodate peaks in demand and to repair damage caused by storms, cold weather, accidents, and other occurrences. The industry employs relatively few part-time workers.
The hazards of working with electricity, natural gas, treatment chemicals, and wastes can be substantial, but generally are avoided by following rigorous safety procedures. Protective gear such as rubber gloves with long sleeves, nonsparking maintenance equipment, and body suits with breathing devices designed to filter out any harmful fumes are mandatory for work in dangerous environs. Employees also undergo extensive training on working with hazardous materials and utility company safety measures.
In 1999, the electric, gas, and sanitary services industries reported just 6.1 cases of work-related injury or illness per 100 full-time workers, compared with an average of 6.3 cases for all industries, and 9.2 cases for manufacturing industries. Sanitary services, however, had injury and illness rates higher than the average for all industries, with 9.9 cases per 100 full-time workers, reflecting the physically demanding nature of refuse collection and disposal.
Employment
Public utilities employed about 851,000 workers in
2000. Electric services provided about 42 percent of all jobs, as shown in table
1.
Table 1.
Distribution of wage and salary employment in nongovernment public
utilities, 2000
(Employment in thousands) |
| Industry |
Employment |
Percent |
| Total, all utilities |
851 |
100 |
| Electric services |
357 |
42.0 |
| Water supply and sanitary services |
214 |
25.1 |
| Combination utility services |
152 |
17.9 |
| Gas production and distribution |
128 |
15.0 |
Although electric utilities are among the biggest customers of natural gas
utilities, the processes used to produce their services are largely unrelated.
This diversity of production processes is reflected in the size of the
establishments that make up the utilities industry. The combination utility
industry consists of relatively large plants. In 2000, it accounted for less
than 7 percent of the reporting establishments, yet employed an average of more
than 90 workers per establishment. On the other hand, water supply utilities
accounted for 16 percent of workplaces, yet employed only an average of 8
workers per establishment (table 2).
| Table 2.
Nongovernment establishments in electric, gas, and sanitary services and
average employment per establishment, 2000 |
| Industry |
Number of establishments |
Employment per establishment |
| Total, all utilities |
25,369 |
34 |
| |
| Sanitary services |
8,157 |
21 |
| Electric services |
6,440 |
56 |
| Gas production and distribution |
4,491 |
28 |
| Water supply |
3,966 |
8 |
| Combination utility services |
1,674 |
91 |
| Irrigation systems |
514 |
6 |
| Steam and air-conditioning supply |
128 |
16 |
Although many establishments are small, almost
half of public utility workers are employed in establishments with 250 or more
workers (see chart).
Occupations
in the Industry
About one-third of those employed in the public utilities industry work in production or installation, maintenance, and repair occupations (table 3). About 20 percent work in office and administrative support occupations; about 13 percent are employed in management, business, and financial occupations; and the remaining workers primarily are in professional or transportation and material moving occupations.
Workers in production and installation, maintenance, and repair occupations install and maintain pipelines and powerlines, operate and fix plant machinery, and monitor treatment processes. For example, electrical power-line installers and repairers install and repair cables or wires used in electrical power or distribution systems. They install insulators, wooden poles, and light- or heavy-duty transmission towers. First-line supervisors and managers directly supervise and coordinate the activities of production and repair workers. These supervisors ensure that workers use and maintain equipment and materials properly and efficiently to maximize productivity.
Production occupations include power plant operators, power distributors and dispatchers, and water and liquid waste treatment plant operators. Power plant operators control or operate machinery, such as stream-driven turbine generators, to generate electric power, often using control boards or semi-automatic equipment. Power distributors and dispatchers coordinate, regulate, or distribute electricity or steam in generating stations, over transmission lines to substations, and over electric power lines. Water and liquid waste treatment plant and system operators control the process of treating water or liquid waste, take samples of water for testing, and may perform maintenance of treatment plants.
Industrial machinery mechanics install, repair, and maintain machinery in power generating stations, gas plants, and water treatment plants. They repair and maintain the mechanical components of generators, waterwheels, water-inlet controls, and piping in generating stations; steam boilers, condensers, pumps, compressors, and similar equipment in gas manufacturing plants; and equipment used to process and distribute water for public and industrial uses.
General maintenance and repair workers perform work involving a variety of maintenance skills to keep machines, mechanical equipment, and the structure of an establishment in repair. Generally found in small establishments, these workers have duties that may involve pipefitting, boilermaking, electrical work, carpentry, welding, and installing new equipment.
Office and administrative support occupations account for about one-fifth of the jobs in the utilities industry. Customer service representatives interview applicants for water, gas, and electric service. They talk with customers by phone or in person and receive orders for installation, turn-on, discontinuance, or change in service. General office clerks may do bookkeeping, typing, stenography, office machine operation, and filing. Utilities meter readers read electric, gas, water, or steam consumption meters visually or remotely using radio transmitters and record the volume used by residential and industrial customers. Financial clerks, such as bookkeeping, accounting, and auditing clerks, compute, classify, and record numerical data to keep financial records complete. They perform any combination of routine calculating, posting, and verifying duties to obtain primary financial data for use in maintaining accounting records.
Transportation and material-moving occupations include refuse and recyclable material collectors and truck drivers. Refuse and recyclable material collectors collect and dump refuse and recyclable materials from containers into a truck. Truck drivers operate refuse collection trucks that are either self-loading or loaded by refuse collectors.
Managers and administrators in the utilities industry plan, organize, direct, and coordinate management activities. They often are responsible for maintaining an adequate supply of electricity, gas, water, steam, or sanitation service.
Professional and related occupations in this industry include engineers and computer specialists. Engineers develop technologies that allow, for example, utilities to produce and transmit gas and electricity more efficiently and water more cleanly. They also may develop improved methods of landfill or wastewater treatment operations in order to maintain compliance with government regulations. Computer specialists develop computer systems to automate utility processes; provide plant simulators for operator training; and improve operator decision making. Engineering technicians assist engineers in research activities and may conduct some research independently.
Training
& Advancement
Public utilities provide career opportunities for
persons with varying levels of experience and education. However, because the
utilities industry consists of many different companies and products, skills
developed in one industry may not be transferable to other industries.
High school graduates qualify for most
entry-level production jobs. Production workers may start as laborers or in
other unskilled jobs and, by going through an apprenticeship program and gaining
on-the-job experience, advance into better-paying positions that require greater
skills or have greater responsibility. Substantial advancement is possible even
within a single occupation. For example, power plant operators may move up
through several levels of responsibility until they reach the highest-paying
operator jobs. Advancement in production occupations generally requires mastery
of advanced skills on the job, usually with some formal training provided by the
employer or through additional vocational training at a 2-year technical
college. Additional formal education from an outside source is sometimes needed.
Most computer, engineering, and technician jobs
require technical education after high school, although opportunities exist for
persons with degrees ranging from an associate degree to a doctorate. These
workers are usually familiar with company objectives and production methods
which, combined with college education, equips them with many of the tools
necessary for advancement to management positions. Graduates of 2-year technical
institutes usually fill technician positions. Sometimes, graduates of
engineering programs will start as technicians until an opportunity to advance
into an engineering position arises.
Managerial jobs generally require a 4-year
college degree, although a 2-year technical degree may be sufficient in smaller
plants. Managers usually can advance into higher-level management jobs without
additional formal training outside the workplace. Competition is expected to be
keen for management positions, as industry restructuring is forcing utility
companies to shed excess layers of management to improve productivity and
competitiveness in the new deregulated environment.
Table
3. Employment of wage and salary workers in public utilities by
occupation, 2000 and projected change, 2000-10
(Employment in thousands) |
| Occupation |
Employment,
2000 |
Percent
change, 2000-10 |
| Number |
Percent |
|
All occupations
|
851 |
100.0 |
4.9 |
| |
|
Management, business, and
financial occupations
|
110 |
13.0 |
4.6 |
|
General and operations
managers
|
18 |
2.1 |
13.9 |
|
Accountants and auditors
|
9 |
1.1 |
3.5 |
| |
|
Professional and related
occupations
|
101 |
11.9 |
2.1 |
|
Computer specialists
|
15 |
1.8 |
20.2 |
|
Electrical engineers
|
10 |
1.2 |
-11.9 |
|
Nuclear engineers
|
8 |
0.9 |
-9.3 |
|
Engineering technicians
|
13 |
1.5 |
-1.4 |
| |
|
Service occupations
|
15 |
1.7 |
18.2 |
|
Building and grounds
cleaning and maintenance occupations
|
10 |
1.1 |
24.2 |
| |
|
Sales and related
occupations
|
15 |
1.8 |
9.7 |
| |
|
Office and administrative
support occupations
|
170 |
20.0 |
-5.9 |
|
First-line
supervisors/managers of office and administrative support workers
|
12 |
1.5 |
8.0 |
|
Bookkeeping, accounting,
and auditing clerks
|
9 |
1.1 |
-0.4 |
|
Customer service
representatives
|
44 |
5.2 |
4.4 |
|
Meter readers, utilities
|
25 |
2.9 |
-34.3 |
|
Office clerks, general
|
17 |
2.0 |
-2.9 |
|
Executive secretaries and
administrative assistants
|
11 |
1.3 |
-6.4 |
| |
|
Construction and
extraction occupations
|
71 |
8.4 |
11.7 |
|
Electricians
|
10 |
1.1 |
7.2 |
|
Plumbers, pipefitters,
and steamfitters
|
12 |
1.4 |
6.4 |
|
Hazardous materials
removal workers
|
9 |
1.1 |
46.3 |
| |
|
Installation,
maintenance, and repair occupations
|
181 |
21.3 |
-0.9 |
|
First-line
supervisors/managers of mechanics, installers, and repairers
|
21 |
2.4 |
-2.0 |
|
Electrical and
electronics repairers, powerhouse, substation, and relay
|
14 |
1.6 |
-5.5 |
|
Vehicle and mobile
equipment mechanics, installers, and repairers
|
9 |
1.0 |
11.5 |
|
Control and valve
installers and repairers, except mechanical door
|
19 |
2.2 |
-1.8 |
|
Industrial machinery
mechanics
|
10 |
1.2 |
3.4 |
|
Electrical power-line
installers and repairers
|
62 |
7.3 |
-5.8 |
|
Maintenance and repair
workers, general
|
18 |
2.1 |
8.0 |
| |
|
Production occupations
|
96 |
11.2 |
5.4 |
|
First-line
supervisors/managers of production and operating workers
|
16 |
1.9 |
-0.9 |
|
Power distributors and
dispatchers
|
6 |
0.7 |
-12.7 |
|
Power plant operators
|
24 |
2.8 |
-4.6 |
|
Water and liquid waste
treatment plant and system operators
|
11 |
1.2 |
57.5 |
| |
|
Transportation and
material moving occupations
|
90 |
10.6 |
31.1 |
|
Truck drivers, heavy and
tractor-trailer
|
18 |
2.1 |
50.5 |
|
Refuse and recyclable
material collectors
|
38 |
4.4 |
24.3 |
| |
| NOTE:
May not add to totals due to omission of occupations with small
employment. |
Job Outlook
Wage and salary employment in public utilities is
expected to increase only 5 percent between 2000 and 2010, slower than the 16
percent growth projected for all industries combined. Projected employment
change, however, varies by industry segment, as shown in table 6. Although
electric power and natural gas are essential to everyday life, employment
declines will result from improved production methods and technology, energy
conservation by consumers and more efficient appliances, and a more competitive
regulatory environment.
| Table 6.
Projected employment growth in public utilities by industry segment,
2000-10 |
| Industry segment |
Percent change |
| Total, all public utilities |
4.9 |
| |
| Electric services |
-9.2 |
| Gas production and distribution |
-6.3 |
| Combination utility services |
-9.2 |
| Water supply and sanitary services |
45.1 |
Reorganization of electric and gas utilities has
increased competition and provided incentives for improved efficiency. For
example, nonutility generators of electricity, such as a major industrial plant
operating its own power generators, are permitted to sell their excess
electricity to utilities at competitive rates. Also, independent power producers
can build electric power generating plants for the sole purpose of selling their
power to utilities. These producers generally build gas-turbine generating
plants, which have lower Construction and environmental costs, employ fewer
workers, and usually can sell electric power more cheaply than the coal-powered
steam-turbine generator plants.
In the gas transmission and distribution
industry, regulatory changes now allow wholesale buyers to purchase gas at
competitive rates from any producer and to use the gas pipeline transmission
network to transport the gas. This process also is occurring at the distribution
level. These changes have caused an increase in gas and electric utility
mergers, workforce reductions, and the redesign and reallocation of job duties
in a process that will continue through the projection period.
New and continuing energy policies also provide
investment tax credits for research on and development of renewable sources of
energy and improving the efficiency of equipment used in electric utilities. As
a result, electric utilities will continue to increase the productivity of their
plants and workers, resulting in a slowdown in employment opportunities.
However, highly trained technical personnel with the education and experience to
take advantage of new developments in electric utilities should face good
prospects for employment.
In the water supply and sanitary services
industries, regulatory changes have had the opposite impact. Regulations in
these industries have not been designed to increase competition, but to increase
the number of contaminants that must be monitored and treated and to tighten the
environmental impact standards of these industries, resulting in increased
employment.
Two nonregulatory competing trends affect gas
production and distribution utilities. Although natural gas is an increasingly
popular choice among homeowners, businesses, and electric utilities, the
efficiency of natural gas furnaces has increased dramatically, significantly
reducing average home consumption. These energy-conserving technologies will
likely continue to minimize the relative use of natural gas by most industries
and by individual homes. In addition, utilities in colder climates have begun to
automate meter reading and billing procedures. Combined, these developments are
projected to result in a decrease in employment in natural gas transmission and
distribution services.
Water supply and sanitation services are
projected to be the fastest growing segment of public utilities, with employment
projected to increase 45 percent from 2000 to 2010. This segment is expected to
grow due to an increase in the amount of waste generated per person, growth of
the population, increasing disposal requirements for different materials, and a
rise in the percentage of refuse that is recycled. Also, newly constructed
housing developments are more likely to have community water supplies and
wastewater treatment facilities, increasing demand for these services.
About 28,000 new jobs in this industry will be
created in transportation and material-moving occupations, such as truck drivers
and refuse and recyclable material collectors. Despite automation and other
improvements in production technology in this industry, expanding hazardous
waste regulations and the increasing number of contaminants that must be
monitored are expected to contribute to fast growth in occupations such as
hazardous materials removal workers and water and liquid waste treatment plant
and system operators.
In general, persons with college training in
advanced technology will have the best opportunities in public utilities
industries. Computer specialists, including computer systems analysts and
computer programmers, are expected to be among the fastest growing
occupations in the professional and related occupations group. With emphasis on
improving plant automation and productivity, employment of these
college-educated workers is projected to grow by 20 percent. Sales and related
occupations are expected to increase in number and importance as competition for
wholesale customers, who can now buy power from the lowest bidder, increases and
utilities begin to rely on their sales staff to expand their customer base. Some
office and administrative support workers, such as utilities meter readers and
bookkeeping, accounting, and auditing clerks, are among those affected by
increasing automation. Technologies including radio-transmitted meter reading
and computerized billing procedures are expected to decrease employment.
Earnings
Overall, nonsupervisory workers in the industry had
average weekly earnings of $895 in 2000. Earnings varied by industry segment
within public utilities (table 4). Average weekly earnings for production
workers were highest in combination utilities ($1,084) and electric services
($941), and lowest in sanitary services ($758).
| Table 4. Average
earnings and hours of nonsupervisory workers in public utilities by
industry segment, 2000 |
| Industry segment |
Earnings |
Weekly |
| Weekly |
Hourly |
Hours |
| Total, private industry |
$474 |
$13.74 |
34.5 |
| |
| Public utilities |
895 |
21.47 |
41.7 |
| Combination utility services |
1084 |
25.57 |
42.4 |
| Electric services |
941 |
22.50 |
41.8 |
| Gas production and
distribution |
812 |
19.67 |
41.3 |
| Sanitary services |
758 |
18.17 |
41.7 |
Earnings in public utilities are generally higher
than earnings in other industries. The hourly earnings for production workers in
public utilities averaged $21.47 in 2000, compared with $13.74 in all private
industry. This was due in part to more overtime and weekend work—as utility
plant operations must be monitored 24 hours a day—which commands higher hourly
rates. Earnings in selected occupations in public utilities appear in table 5.
| Table
5. Median hourly earnings of the largest occupations in public
utilities, 2000 |
| Occupation |
Electric,
gas, and sanitary services |
All
industries |
| Electrical and electronics
repairers, powerhouse, substation, and relay |
$23.95 |
$23.34 |
| Industrial machinery
mechanics |
23.93 |
17.30 |
| Electrical power-line
installers and repairers |
23.52 |
22.01 |
| Power plant operators |
23.44 |
22.16 |
| Control and valve
installers and repairers, except mechanical door |
22.37 |
19.87 |
| Customer service
representatives |
15.55 |
11.83 |
| Truck drivers, heavy and
tractor-trailer |
15.31 |
15.25 |
| Meter readers, utilities |
15.27 |
13.32 |
| Water and liquid waste
treatment plant and system operators |
14.74 |
15.09 |
| Refuse and recyclable
material collectors |
12.27 |
11.83 |
More than 30 percent of workers in public utilities are union members or are
covered by a union contract, more than double the 14.9 percent for all
industries.
Source:
Career Guide to Industries, Bureau of Labor Statistics
|