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| About Western Products Organizational chart Strategic planning History 30 years 25 years Utility industry develops Financial information Power projects 2006 Annual Report Frequently asked questions | 1879 – 1895: Shining light on electricity origins, early developments |
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by Jeff Hein (Note: This is the first of a series about the history of the U.S. electric utility industry. Hein developed this material as part of his master's thesis research.)
The roots of the modern day electric utility industry can be traced back to two events that occurred in 1879. The first occurred when Charles Brush invented a dynamo and arc lamp lighting system for street lighting, which he put to use in Cleveland, Ohio. That same year, Thomas Alva Edison and his team of researchers invented the incandescent light bulb for home lighting, the predecessor of the light bulb in use today.
In New York City in 1882, Pearl Street Station was the first central electricity-generating station constructed to support the light bulb invention. Using a direct current, 100-volt generation and distribution system, Pearl Street Station used reciprocating steam engines to provide the mechanical energy required to create electricity. Lighting was its first application. In 1878, Edison founded the Edison Electric Light Company. It evolved into the General Electric Company by 1892. Edison was a major stockholder.
The need for electricity would grow as appliances, such as irons and even electric streetcars, were introduced. While Edison and other predecessors used wood or coal, which was dirty, they were developing a market for cleaner electricity. Development and competition By 1880, electricity was being hailed as a modern marvel that would revolutionize households and industry nationwide. Optimists envisioned increased demand for electricity and others sought entry into this growing market. Central generating stations and distribution systems (wires and poles) began sprouting up in many cities. Competition among power providers was commonplace. Initially, the U.S. electric utility industry operated in a competitive, market-based environment. Because low voltage restricted distribution to about one mile from the generating station, many small scale generating stations and distribution systems were built. In Chicago alone, 45 electric utilities competed for customers. This industry design was repeated again and again within cities throughout the United States. Competing technologies
During this same period, another form of electricity—"alternating current"—was being developed. The primary developers were Nikola Tesla, William Stanley Jr., and George Westinghouse.
In 1883, Stanley invented the first modern-day transformer used in AC electrical systems. Tesla invented the AC polyphase motor in 1885 and married it with the transformer. AC technology was more efficient because it could increase low-voltage generation to a higher voltage for long distance transmission, then back to low-voltage distribution for end use. While DC power systems had a head start and were more widely used than AC systems, in 1882, AC power systems were still being developed and installed. Together, with the finances of George Westinghouse, the AC electric system proved to be a strong competitor to DC systems. Westinghouse Electric Company was founded in 1886. The first AC system, upon which today's is based, was built in 1891 to provide power from the Ames Hydro-power Station to the Gold King Mine near Telluride, Colo.
These two technologies would eventually compete for control of the U.S. electricity market. This head-to-head competition occurred during the development of the Niagara Falls' Edward Dean Adams power station. The Niagara Power Commission, wishing to deliver power to Buffalo nearly 23 miles away, awarded a contract to the Tesla/Westinghouse AC generators, based on their Chicago World's Fair exhibit. This was a major defeat for Edison and the DC power systems he envisioned. (Note: Hein was a substation engineer in the Design group at CSO.) |
