NAICS 221122 Quarterly Industry Report
Electric Power Distribution
Comprehensive industry research for valuation professionals, business owners, buyers, and lenders
NAICS Code: 221122Sector: Utilities (22)Updated: Q1 2026
About This Report
This industry profile for Electric Power Distribution (NAICS 221122) draws on data from the Bureau of Labor Statistics[6], U.S. Census Bureau, and SBA size standards database[7]. Published by Fair Market Value and updated quarterly, it provides valuation professionals, electric utility 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 Snapshot
Key metrics for the electric power distribution industry.
Industry Definition & Overview
Electric Power Distribution (NAICS 221122) encompasses establishments primarily engaged in operating electric power distribution systems consisting of lines, poles, meters, and wiring, or acting as electric power brokers or agents arranging electricity sales through distribution systems operated by others per the U.S. Census Bureau[5]. Distribution networks operate at voltages from 4 to 46 kilovolts, stepping down bulk transmission power through substations to deliver electricity at usable voltages to homes, businesses, and industrial customers.
About 1,269 businesses operate 8,290 establishments, employing roughly 356,638 workers and generating approximately $43.7 billion in annual payroll per the Bureau of Labor Statistics[6]. NextEra Energy (through Florida Power and Light) serves 12 million people, making it the largest U.S. electric utility by customer count. Exelon serves over 10 million customers through six regulated utilities across the Mid-Atlantic and Midwest. Duke Energy, Southern Company, and American Electric Power round out the top operators. Distribution serves roughly 160 million customer meters nationwide.
Per the SBA Table of Size Standards[7], the size standard is 1,100 employees. Investor-owned utilities invested $60.2 billion in distribution infrastructure in 2024, up from $56.7 billion in 2023. State public utility commissions regulate retail electricity rates, service quality standards, and capital investment recovery for distribution utilities. Grid modernization programs are deploying smart meters, automated switches, and distributed energy management systems to improve reliability and accommodate two-way power flows from rooftop solar and battery storage installations at customer sites.
What's Included in This Industry
- Local electric distribution line operations
- Substation voltage transformation and control
- Smart meter deployment and data management
- Power quality monitoring and regulation
- Distribution system maintenance and repair
- Customer service and billing operations
- Storm damage restoration and emergency response
- Vegetation management and line clearance
- Electric power brokerage and sales aggregation
- Distributed energy resource interconnection
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 Transmission, Control, and Distribution | 22112 |
| National Industry | Electric Power Distribution | 221122 |
Related NAICS Codes
| Code | Description | Relationship |
|---|---|---|
| 221121 | Electric Bulk Power Transmission and Control | Electric Bulk Power Transmission delivers wholesale electricity to distribution substations where voltage is stepped down for delivery to retail customers through local distribution networks |
| 221112 | Fossil Fuel Electric Power Generation | Fossil Fuel Electric Power Generation produces wholesale electricity purchased by distribution utilities for resale to retail customers, with fuel mix affecting the rates consumers pay |
| 221114 | Solar Electric Power Generation | Solar Electric Power Generation connects to distribution networks through rooftop installations and community solar projects, creating two-way power flows that distribution systems must manage |
| 237130 | Power and Communication Line and Related Structures Construction | Power Line Construction builds distribution poles, underground conduit, and local substations that distribution utilities need to serve growing customer counts and replace aging infrastructure |
| 221210 | Natural Gas Distribution | Natural Gas Distribution shares regulated utility characteristics with electric distribution, both operating under state commission oversight with similar rate case proceedings and infrastructure investment recovery mechanisms |
Geographic Concentration
Top states by share of national establishments.
| # | State | % Est. | Total Est. |
|---|---|---|---|
| 1 | Texas | 9.1% | 767 |
| 2 | Florida | 6.1% | 516 |
| 3 | New York | 4.8% | 407 |
| 4 | North Carolina | 4.5% | 379 |
| 5 | Ohio | 4.3% | 362 |
| 6 | Iowa | 4.1% | 349 |
| 7 | Pennsylvania | 3.7% | 314 |
| 8 | California | 3.7% | 312 |
| 9 | Illinois | 3.5% | 295 |
| 10 | Georgia | 3.3% | 276 |
% Of Establishments
0%
9%
Source: County Business Patterns, U.S. Census Bureau[3]
SBA Lending Summary
48
Total SBA Loans
$101.5M
Total Loan Volume
$2.1M
Average Loan Size
18 yrs
Average Loan Term
9.17%
Average Interest Rate
152
Jobs Supported
Source: SBA 7(a) Program Data, U.S. Small Business Administration — FY 2025[4]
Key Insight: Per the SBA Table of Size Standards[7], Electric Power Distribution (NAICS 221122) has a size standard of 1,100 employees for federal contracting purposes. SBA 7(a) loans[8] support grid upgrades, smart meter deployment, and working capital for qualifying operators. Rural electric cooperatives and small municipal utilities represent the primary small business profile in this classification. Additionally, 504/CDC loans[9] provide long-term, fixed-rate financing for major fixed assets such as real estate and equipment.
Top SBA Lenders
| # | Lender | Loans | Volume | Avg Loan |
|---|---|---|---|---|
| 1 | Enterprise Bank & Trust | 16 | $73.8M | $4.6M |
| 2 | Banc of California | 8 | $20.6M | $2.6M |
| 3 | Manufacturers and Traders Trust Company | 8 | $4.7M | $585K |
| 4 | BayFirst National Bank | 8 | $1.2M | $150K |
| 4 | Newtek Bank, National Association | 8 | $1.2M | $150K |
Frequently Asked Questions
Common questions about this industry.
What companies operate electric distribution systems?
NextEra Energy serves 12 million people through Florida Power and Light. Exelon serves over 10 million customers across six utilities per the U.S. Census Bureau[5]. Duke Energy, Southern Company, rural cooperatives, and municipal utilities serve the remaining customer base.
How many customers does electric distribution serve?
Distribution systems serve roughly 160 million customer meters nationwide, with about 8,290 establishments employing 356,638 workers per the Bureau of Labor Statistics[6]. Investor-owned, cooperative, and municipal utilities all participate in distribution service.
What is the SBA size standard for Electric Distribution?
Per the SBA Table of Size Standards[7], NAICS 221122 has a size standard of 1,100 employees. This determines eligibility for SBA loans, federal contracting set-asides, and small business programs.
What NAICS codes are related to electric distribution?
Related codes include NAICS 221121 (Transmission), NAICS 221112 (Fossil Fuel), NAICS 221114 (Solar), NAICS 237130 (Power Line Construction), and NAICS 238210 (Electrical Contractors) per the U.S. Census Bureau[5].
How much is invested in distribution?
Investor-owned utilities invested $60.2 billion in distribution infrastructure in 2024, up from $56.7 billion in 2023. Spending covers grid modernization, smart meters, storm hardening, and capacity expansion to serve growing demand.
What activities are included in NAICS 221122?
Core activities include distribution line operations, substation management, smart metering, power quality monitoring, system maintenance, customer billing, storm restoration, vegetation management, power brokerage, and distributed energy interconnection per the U.S. Census Bureau[5].
Can electric distribution businesses get SBA loans?
Yes, firms meeting the 1,100-employee standard qualify for SBA 7(a) loans[8] covering grid upgrades, smart meter programs, and working capital. Rural cooperatives and small municipal utilities are the most common qualified applicants.
What is grid modernization?
Grid modernization deploys smart meters, automated switching, sensors, and distributed energy management systems to improve reliability and manage two-way power flows per the Bureau of Labor Statistics[6]. These investments help distribution utilities accommodate rooftop solar, battery storage, and electric vehicle charging at customer sites.
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. Small Business Administration, SBA 7(a) Loan Program Data data.sba.gov
- [5]U.S. Census Bureau census.gov
- [6]Bureau of Labor Statistics bls.gov
- [7]SBA Table of Size Standards sba.gov
- [8]SBA 7(a) loans sba.gov
- [9]504/CDC loans sba.gov
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