Electric Power Distribution Revenue Benchmarks
The average electric power distribution business in the United States generates $172.3M in annual revenue, according to the U.S. Census Bureau Statistics of U.S. Businesses (SUSB 2021). There are 1,269 electric power distribution businesses in the U.S., employing 356,638 workers with an average profit margin of 5.0%. The average employee in this industry earns $128K per year (Bureau of Labor Statistics QCEW 2023).
What Does a Electric Power Distribution Business Actually Do?
Electric Power Distribution: Businesses that provide essential services — electricity, natural gas, water, and sewage — through pipes and wires.
Who buys: Consumers, businesses, and industrial users within a service territory.
Sector-level description — a more specific write-up is available for high-traffic industries.
Average Revenue
$172.3M
per year
Profit Margin
5.0%
industry average
Revenue / Employee
$613K
per year
Total Businesses
1,269
in the US
Est. Owner Income
$8.6M
small business avg
Labor Cost
20.0%
of revenue
Avg Employee Wage
$128K
per year (BLS)
Market Saturation
0.4
firms per 100K people
How Much Do Electric Power Distribution Charge?
Electric Power Distribution: Utility rates are regulated by state public utility commissions and vary by region. The specifics vary within the electric power distribution category — the ranges below are typical for the sector.
| Service | Typical range |
|---|---|
Residential electric | $0.10–0.30/kWh |
Residential natural gas | $0.80–1.60/therm |
Residential water | $3–10 per 1000 gallons |
Sector-typical ranges — individual services within this industry may fall higher or lower.
Complete electric power distribution business plan
A 12-section data-backed business plan for a electric power distribution business — executive summary, market analysis, competitive landscape, revenue model, 3-year financial projections, operations, marketing, staffing, funding request. Pre-populated with real Census, IRS, and BLS data on this industry. Free to view.
Cost Structure — Where Every $100 in Revenue Goes
Approximate P&L breakdown for the electric power distribution industry. Labor share and net profit are grounded in Census SUSB and IRS SOI data. Other lines are split using sector-typical ratios.
| Category | Per $100 revenue | Per typical business | What's in it |
|---|---|---|---|
Fuel & purchased power | $34 | $58.1M | Natural gas, coal, or purchased wholesale electricity. |
Wages & benefits | $20 | $34.5M | Payroll for all employees at the business (owner comp not included for small owner-operators). |
Rent & facilities | $11 | $19.4M | Rent or mortgage on business location plus utilities tied to the space. |
Marketing & advertising | $2 | $3.9M | Google/Meta ads, SEO, print, referral fees, event sponsorships. |
Other operating costs | $28 | $47.8M | Grid maintenance, regulatory compliance, capital depreciation. |
Net profit | $5 | $8.6M | What remains for the owner or shareholders after all business expenses. |
Directionally accurate for a typical business in the industry. Individual businesses vary widely — a franchise may run a very different cost mix from an independent, and older established businesses often have lower labor share than newer ones.
Average Revenue by Business Size
Industry Dynamics (Census BDS 2023)
New Business Rate
4.61%
openings/year
Closure Rate
5.49%
closings/year
Net Job Growth
+2.33%
annual
Businesses Closed
127
in 2023
Firm Count Trend
Should You Start a Electric Power Distribution Business?
Startup Cost
$50K – $250K
Break-Even
0 months
5-Year Survival Rate
50.0%
Related Industries
Frequently Asked Questions
- What does a electric power distribution business do?
- Electric Power Distribution: Businesses that provide essential services — electricity, natural gas, water, and sewage — through pipes and wires. Consumers, businesses, and industrial users within a service territory.
- How much do electric power distribution charge?
- Electric Power Distribution: Utility rates are regulated by state public utility commissions and vary by region. The specifics vary within the electric power distribution category — the ranges below are typical for the sector. See the pricing table above for typical rates by service type.
- How much does the average electric power distribution make per year?
- The average electric power distribution business generates $172.3M in annual revenue, based on U.S. Census Bureau data (SUSB 2021). After expenses, the estimated owner profit is $8.6M per year at a 5.0% profit margin.
- How many electric power distribution businesses are there in the US?
- There are 1,269 electric power distribution businesses operating in the United States, employing a total of 356,638 workers.
- How much does it cost to start a electric power distribution business?
- Startup costs for a electric power distribution business typically range from $50K to $250K, with a 5-year survival rate of 50.0%.
- What is the average salary in the electric power distribution industry?
- The average employee in the electric power distribution industry earns $128K per year, according to Bureau of Labor Statistics data (QCEW 2023).
Industry Growth & Survival
The electric power distribution industry is actively growing — adding jobs at a net rate of 2.3% per year. New establishments are opening faster than existing ones close (4.6% entry vs 5.5% exit), indicating healthy demand.
Approximately 75% of electric power distribution businesses survive their first 5 years. This is above the national average (~50%), making it a relatively safe industry to enter. In 2023, 127 firms in this industry closed permanently.
Employment & Wages
The average employee in the electric power distribution industry earns $127,687/year. This is significantly above the national average of ~$65K, reflecting the skilled nature of this work. With 6,440 establishments employing 223,707 people, the typical business has about 35 employees.
Industry Trend (2000–2023)
The electric power distribution industry has grown 43% since 2000 (from 1,572 to 2,249 firms).
See full historical statistics →Compare Electric Power Distribution revenue with other industries: