NAICS 221112 Quarterly Industry Report
Fossil Fuel Electric Power
Comprehensive industry research for valuation professionals, business owners, buyers, and lenders
NAICS Code: 221112Sector: Utilities (22)Updated: Q1 2026
About This Report
This industry profile for Fossil Fuel Electric Power Generation (NAICS 221112) draws on data from the Bureau of Labor Statistics[5], U.S. Census Bureau, and SBA size standards database[6]. Published by Fair Market Value and updated quarterly, it provides valuation professionals, energy analysts, and business brokers with current market data. The editorial analysis reflects the independent assessment of FairMarketValue.com's research team, with all quantitative claims sourced to publicly verifiable databases.
Industry Definition & Overview
Fossil Fuel Electric Power Generation (NAICS 221112) encompasses establishments primarily engaged in operating fossil fuel powered electric generation facilities that burn coal, natural gas, or petroleum in internal combustion engines, combustion turbines, or conventional steam boilers to produce electric energy per the U.S. Census Bureau[4]. Generated electricity is delivered to bulk power transmission systems or distribution networks. Natural gas combined-cycle plants now dominate new construction, while coal-fired capacity continues declining through retirements.
About 1,783 establishments employ roughly 63,653 workers nationally per the Bureau of Labor Statistics[5]. Natural gas provides over 40 percent of total U.S. electricity generation, while coal has fallen to roughly 16 percent. The Southern Company, Duke Energy, and Dominion Energy rank among the largest operators. Coal plant retirements accelerated through the 2010s and 2020s, driven by low natural gas prices, environmental regulations, and renewable energy competition. Combined-cycle gas turbines offer higher thermal efficiency and faster ramping than legacy coal and oil-fired steam plants.
Per the SBA Table of Size Standards[6], the size standard is 950 employees. EPA emissions standards under the Clean Air Act regulate sulfur dioxide, nitrogen oxides, particulate matter, and mercury from fossil fuel combustion. Carbon dioxide regulation through EPA's power plant rules continues evolving through legal challenges and rulemaking cycles. Natural gas price volatility directly affects generation economics, with fuel costs representing the largest variable expense for gas-fired plants. Coal production fell to 512 million short tons in 2024, the lowest level since 1964, reflecting reduced demand from power generation.
What's Included in This Industry
- Natural gas combined-cycle power generation
- Coal-fired steam electric generation
- Simple-cycle gas turbine peaking plants
- Petroleum-fired power generation
- Emissions control system operation
- Fuel procurement and inventory management
- Plant operations and maintenance
- Grid dispatch and load following
- Ash and byproduct management from coal combustion
- Environmental compliance and monitoring
NAICS Classification Hierarchy
| Level | Description | Code |
|---|---|---|
| Sector | Utilities | 22 |
| Subsector | Utilities | 221 |
| Industry Group | Electric Power Generation, Transmission and Distribution | 2211 |
| NAICS Industry | Electric Power Generation | 22111 |
| National Industry | Fossil Fuel Electric Power Generation | 221112 |
Related NAICS Codes
| Code | Description | Relationship |
|---|---|---|
| 221121 | Electric Bulk Power Transmission and Control | Electric Bulk Power Transmission carries fossil fuel plant output across high-voltage lines to load centers, with transmission congestion sometimes limiting how much generation can reach market |
| 221122 | Electric Power Distribution | Electric Power Distribution delivers fossil fuel generated electricity to retail customers through local networks, with distribution utilities purchasing wholesale power from generating plants |
| 221210 | Natural Gas Distribution | Natural Gas Distribution delivers pipeline gas to power plants, with gas-fired generators consuming roughly 40 percent of total U.S. natural gas production for electricity generation |
| 213112 | Support Activities for Oil and Gas Operations | Support Activities for Oil and Gas Operations provide drilling and well services that supply the natural gas feedstock consumed by gas-fired electric generation facilities |
| 221113 | Nuclear Electric Power Generation | Nuclear Electric Power Generation provides baseload electricity alongside fossil fuel plants, with nuclear capacity running at high factors while gas plants handle load-following and peaking demand |
| 541330 | Engineering Services | Engineering Services design power plant systems, emissions controls, and turbine installations for fossil fuel generating facilities during construction and upgrade projects |
Geographic Concentration
Top states by share of national establishments.
| # | State | % Est. | Total Est. |
|---|---|---|---|
| 1 | Texas | 9.6% | 172 |
| 2 | California | 5.2% | 94 |
| 3 | Louisiana | 4.8% | 86 |
| 4 | Ohio | 4.2% | 75 |
| 5 | Pennsylvania | 4.0% | 71 |
| 6 | Massachusetts | 3.6% | 65 |
| 7 | New York | 3.3% | 60 |
| 8 | North Carolina | 3.2% | 58 |
| 9 | Illinois | 3.2% | 58 |
| 10 | Georgia | 2.9% | 52 |
% Of Establishments
0%
10%
Source: County Business Patterns, U.S. Census Bureau[3]
Frequently Asked Questions
Common questions about this industry.
What types of businesses operate fossil fuel power plants?
Major operators include Southern Company, Duke Energy, and Dominion Energy. About 1,783 establishments employ roughly 63,653 workers per the U.S. Census Bureau[4]. Independent power producers, merchant generators, and municipal utilities also operate fossil fuel plants across all fuel types.
How much electricity comes from fossil fuels?
Natural gas provides over 40 percent of U.S. electricity, while coal contributes roughly 16 percent per the Bureau of Labor Statistics[5]. Coal's share has declined steadily as plant retirements accelerated and natural gas combined-cycle efficiency improved.
What is the SBA size standard for Fossil Fuel Power Generation?
Per the SBA Table of Size Standards[6], NAICS 221112 has a size standard of 950 employees. This determines eligibility for SBA loans, federal contracting set-asides, and small business programs.
What NAICS codes are related to fossil fuel power?
Related codes include NAICS 221121 (Transmission), NAICS 221122 (Distribution), NAICS 221210 (Gas Distribution), NAICS 213112 (Oil and Gas Support), and NAICS 221113 (Nuclear) per the U.S. Census Bureau[4].
Why are coal plants retiring?
Low natural gas prices, environmental regulations under the Clean Air Act, aging infrastructure, and competition from cheaper renewable energy have driven coal plant closures. Coal production fell to 512 million short tons in 2024, the lowest since 1964.
What activities are included in NAICS 221112?
Core activities include gas combined-cycle generation, coal-fired steam generation, peaking turbine operations, petroleum generation, emissions control, fuel management, plant maintenance, grid dispatch, ash management, and environmental compliance per the U.S. Census Bureau[4].
Can fossil fuel power businesses get SBA loans?
Yes, firms meeting the 950-employee standard qualify for SBA 7(a) loans[7] covering plant upgrades, emissions controls, and working capital. Independent peaking plant operators are the most common small business profile in this classification.
What is a combined-cycle gas plant?
Combined-cycle plants burn natural gas in a combustion turbine, then capture exhaust heat to drive a steam turbine, achieving thermal efficiencies above 60 percent per the Bureau of Labor Statistics[5]. This dual-turbine design produces roughly one-third more electricity from the same fuel compared to simple-cycle gas turbines.
Sources & References
Government datasets and editorial sources used in this report.
- [1]U.S. Bureau of Labor Statistics, Quarterly Census of Employment and Wages bls.gov
- [2]U.S. Census Bureau, Economic Census census.gov
- [3]U.S. Census Bureau, County Business Patterns census.gov
- [4]U.S. Census Bureau census.gov
- [5]Bureau of Labor Statistics bls.gov
- [6]SBA Table of Size Standards sba.gov
- [7]SBA 7(a) loans sba.gov
- [8]504/CDC loans sba.gov
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