The electrical power market in the Midwestern United States

The electric power industry in the Midwest United States, Illinois, Missouri and Wisconsin, are following the general pattern of industry deregulation that has recently taken place in other jurisdictions in the United States. This report describes the economic and business environment in the Midwest and presents potential opportunities. Several electric utilities have stalled investment in energy restructuring due to the uncertainties surrounding electricity deregulation. Others, however, see opportunity to maximize their energy and operational efficiencies. They are investing to upgrade their existing power plants and expand their transmission and distribution systems. In addition, companies are looking to reduce operating costs by improving electric power equipment manufacturing and services. They are taking closer looks at cogeneration power projects, automated systems and enhanced turbine technology. Canadian companies that want to do business in the U.S. should be prepared by building networks. They are strongly advised to work with the Canadian Consulate General in the region as well as other Canadian support agencies. It is expected that despite overall slower growth in the industry, about 45,056 MW of new generating capacity will be added by electric utilities throughout the United States by 2007. Approximately 88 per cent of the new capacity will be new gas-fired capacity. Other changes are also planned for this same time period, including changing fuel mix and deactivating about 12,000 MW of power generating capacity. Electric power generation is expected to increase 1.7 per cent per year from 2000 to 2003. The market for electric power equipment in the U.S. is estimated at over $30.8 billion. This includes steam turbines, generators, steam boilers, hydro turbines, gas turbines and diesel generating sets. It is estimated that between 2000 to 2006, the annual growth rate will be about 2.8 per cent. refs., tabs