The electrical utility industry, the primary supplier of electrical energy in the United States), is gargantuan.  Last year, it provided over 4 million Gigawatts of power through a number of intricate processes.  The sytem consists of a few major steps

Generation- The mechanism by which electricity is created; in the US the primary mechanism is via coal fired power plants.

Transmission-The means by which electricity is moved about the country, often hundreds or thousands of miles

Distribution-The means by which electrical power is apportioned to various municipalities

Delivery- The process of packaging electrical energy to individual customers.

These processes haven’t changed much in the past hundred years.  This lack of innovation results in energy losses, inefficiency in every step of the electrical generation and distribution chain.

Smart Grid is the answer to these shortcomings. Using automation, remote sensing and auto adjusting control systems.  The electrical system is slowly becoming more efficient and responsive to the nations energy.

Reference:

http://energy.gov/oe/services/technology-development/smart-grid

http://www.wikinvest.com/industry/Electric_Utilities

http://en.wikipedia.org/wiki/Electric_utility