Electric Power Generation and Electric Power Transmission and Distribution

I could use some help to see if my thought process is correct on the relationship between Sectors 39-46 and Sector 47. Should the direct output of industries 39-46 be close to or the same as the wholesale price of electricity being generated, and the direct output of sector 47 be equal to the margin between the wholesale and retail price of electricity? I ask this question because the EIA power plant revenue data that feeds part of the IMPLAN model could actually be a mix of wholesale and retail electricity prices (from what I can tell). I was given some coal power plant revenue numbers (almost all of which was based on retail price of power multiplied by the megawatt hours the plant operated) to model the impact of a power plant. But in my mind much of that revenue should be attributed to the utility delivering that power to end users. Am I thinking correctly? 

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  • Official comment

    William,

     

    You are correct here. Per our support article Electricity Generation + Distribution Data:

    • First, generation by sector is gathered in Megawatt-hours (MWH) from the US Energy Information Administration
    • Next, we obtain total revenue for all electricity from the US Energy Information Administration
    • With the value from #2 and the sum of total generation from #1, we calculate a revenue per MWH value, which we multiply against the generation by sector from #1 to get an estimate of revenue by sector.
    • We then split that revenue by sector into generation vs. distribution using the share of price between generators and distributors - http://www.eia.gov/electricity/annual/html/epa_02_04.html.
    • Finally, we split between private, federal, state, and local based on CEW data, which have enough detail for all generation types plus distribution.

    Hope this helps!

    Michael Nealy

  • Hello, 

    Our balance sheet data may also be helpful for understanding the relationships between Industry 47 and Industries 39-46. 

    From Region Details > Social Accounts > Balance Sheets > Industry Balance Sheets > Commodity Demand, filter for Industry 47 and sort by Gross Absorption. For example, about 54% of output in the electricity transmission and distribution industry for the US in 2021 went to purchasing electricity. That means when an impact is analyzed for Industry 47, 54% of Output will be treated as Output going to Commodity 3039.

    Then from Region Details > Social Accounts > Balance Sheets > Commodity Balance Sheet > Industry-Institutional Production you can find the share of electricity produced by each producer (Industries 39-46).

    Running an impact on Industry 47 would include the purchase of energy, and the Indirect impacts on Industries 39-46 would be based on the share of energy production in the region. If you'd like to impact Industry 47 and 40 (fossil fuel electric power generation) separately, use an Industry Contribution Analysis Event for Industry 40 and analyze both Events in the same Group.

    Best, 

    Maria 

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