What Is
Electricity?
In a remarkably dangerous experiment involving a kite, a key, and an electrical storm, Ben Franklin proved that a lightening bolt can turn a metal object into a magnet. While static electricity and magnetism had been observed for thousands of years, it was not until 1807 that scientists realized the two phenomena were linked. Electric current, when flowing through a wire, creates a magnetic field. Not long afterward, engineers successfully reversed the process and created an electric current from a magnetic field. The discovery of "electromagnetic induction" made today's large-scale electric power generation possible.
How Electricity Is Generated
In an electric generator, mechanical energy - from water power or the heat of a steam engine - is used to spin a coil of wire within a magnetic field. As the coil revolves, pulses of electrical current are generated. Thomas Edison saw the potential for translating mechanical energy to electrical energy and delivering that power to the home. The concept still holds true. Electrical power harnesses the energy of coal, natural gas, hydro plants, renewable fuels and nuclear fission and delivers it to customers in manageable portions.
Distributing Electrical Current
Electricity generated at the power plant is transmitted at high voltage over
great distances. Electrical current flows like water, and volts measure the
slope of the flow. Low voltage is like a meandering stream while high voltage
is more like a waterfall. High voltage electricity is "stepped down"
to a lower intensity when it is distributed locally. By the time electricity
reaches the home it is more of a trickle than the
Current technology does not allow electric power to be stored. It must be continuously generated so that it is available every time a light switch is flipped on. That means the power plant must have on hand enough generating capacity to meet the peak needs of its customers 24 hours a day, seven days a week even if some of that capacity sits idle much of the time.

The Economics of Power Generation
Producing power on demand is a little like operating a factory that makes edible Christmas ornaments. In the month of December the factory can count on selling 12,000 edible ornaments and none at all for the rest of the year. In order to meet peak demand, the factory must have on hand hundreds of ornament making machines all year just so it can make fresh and edible products when customers want them.
The same is true with electric power plants. Because its product cannot be
stored, the plant must have the ability to produce on demand. Add to that the
fact that electric generation equipment is extremely expensive to build and
maintain, and you can see why electric utilities require a great deal of
capital investment just to serve all customers adequately.
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