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Electricity Basics

What is Electricity?

Electricity is a form of energy, which occurs when electrons move from one place to another.  Electricity travels at nearly the speed of light.  Though we all use cellphones and other things with batteries, electricity cannot be easily stored on a large (utility) scale.  It must be generated and delivered at almost the precise moment it is needed.  


How is Electricity Generated?

Electricity is generated by causing electrons to move through a wire.  Utilities make or generate electricity by spinning huge magnets inside wire loops.  (If you’ve ever used a magnet to pull or push an object, you are forcing electrons to move.  The principle is the same.)

A large turbine connected to these magnets creates the spinning or rotation.

The turbine is turned by pressurized steam (in most cases) created by boiling water heated by coal, natural gas or other fossil fuels or by nuclear power in large boilers.  Or, the turbines are pushed by wind in a wind turbine (windmill) or by water in hydroelectric generation.

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Solar electric generation works differently.  Electricity is produced when sunlight strikes a solar cell (objects made of semiconductors), knocking electrons loose.  A solar panel comprised of many solar cells is wired to capture these flowing electrons, or electric current.  

How is electricity transmitted?

Simply put, electricity is transmitted from the power plant, which produces or “makes” the electricity, through wires to your house or business.  It is not dissimilar in principle to the way water from a reservoir is piped to your home.

For electricity to get to where it is needed, though, it must go through several intermediate steps. 
1)     Electricity leaves the power plant.

2)     A “Step up” substation near the plant increases the voltage so the electricity can efficiently travel longer distances – similar to increasing the pressure on water in a water pipe.  The voltage is increased to anywhere between 69,000 and 800,000 volts, depending on the distance the power will travel and the amount of electricity to be moved.

3)     Electricity then enters the transmission system, traveling at nearly the speed of light over heavy cables strung between tall towers.

4)     A “step-down” substation near its final destination reduces the voltage so it can be transmitted using smaller cables.

5)     Distribution lines carry the electricity from the step down substation.  

6)     Electricity is further reduced by small transformers on the utility poles (or located underground) to reduce the voltage again to around 120-140 volts and is then delivered to residential customers.

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What are the fuels used to generate electricity in Indiana?

Nearly 80% of Indiana’s electricity is generated from abundant coal. 




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Source: Indiana Utility Regulatory Commission 2014 Annual Report

IEA is an association of utilities serving Hoosier consumers with reliable, affordable electricity and natural gas, heating, cooling and powering homes and businesses across Indiana. Our mission is to advocate policies and promote the general welfare of the energy industry to improve the economy and quality of life in Indiana.
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Indianapolis, IN 46282
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