22 - Utilities

The Utilities sector, identified by NAICS code 22, stands as a backbone of modern infrastructure and daily life. From powering homes to ensuring clean water and effective sewage removal, this sector delivers vital services crucial to residential, commercial, and industrial users across the United States. If you’re a business owner, contractor, or someone interested in government contracting within this sector, understanding NAICS Code 22 is essential.

What is NAICS Code 22?

NAICS Code 22 encompasses establishments primarily engaged in providing utility services, including:

• Electric power generation, transmission, and distribution
• Natural gas distribution
• Steam supply
• Water supply
• Sewage removal and treatment services

These utilities support the functioning of communities and industries, making the sector integral to economic growth and quality of life.

Sector Overview: Utilities

The Utilities sector serves as an essential service industry, responsible for the generation and delivery of:

• Electric Power: Generating electricity and distributing it to residential, commercial, and industrial customers.
• Natural Gas: Supplying natural gas through pipelines for heating, cooking, and power generation.
• Steam Supply: Providing steam for heating and industrial processes.
• Water Supply: Ensuring safe drinking water and water distribution.
• Sewage Removal: Managing wastewater collection and treatment to maintain sanitation and environmental safety.

Typical Business Activities in NAICS Code 22

• Operating electric power plants, substations, and distribution lines
• Maintaining natural gas distribution systems
• Managing water treatment facilities and pipelines
• Operating sewage treatment plants and sewer systems
• Engaging in public utility operations and infrastructure maintenance

Size Standards for NAICS Code 22

The U.S. Small Business Administration (SBA) sets size standards to determine eligibility for small business status within this NAICS code. These standards vary by sub-industry but generally are based on:

• Number of employees: Usually ranges from 500 to 1500 employees depending on the specific utility activity.
• Annual receipts: Can range between $38.5 million to $41.5 million.

Accurate size standards are crucial for businesses seeking federal contracts or small business certifications under this sector.

Examples of Businesses Under NAICS Code 22

• Public and private electric utilities
• Municipal water districts and authorities
• Natural gas pipeline and distribution companies
• Wastewater treatment operators
• Steam supply companies for industrial or district heating

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NAICS Code 22 – Utilities: Code Details

NAICS Code	Sector Title	Description	Typical Businesses/Activities	SBA Size Standards
221	Utilities	Provision of electric power, natural gas, steam, water, and sewage removal services	Electric power generation, Natural gas distribution, Water supply, Sewage treatment	Varies by sub-industry; usually 500-1500 employees or $38.5M-$41.5M annual receipts

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Frequently Asked Questions (FAQ)

Q1: What industries are included in NAICS Code 22?
A: NAICS Code 22 includes electric power generation, natural gas distribution, steam supply, water supply, and sewage removal services.

Q2: How does NAICS Code 22 impact contractors and businesses?
A: It defines the classifications for utility-related businesses, helping determine eligibility for government contracts and small business programs.

Q3: What is the size standard for small businesses under NAICS 22?
A: Size standards range typically from 500 to 1500 employees or $38.5 million to $41.5 million in annual receipts, depending on the specific industry within the utilities sector.

Q4: Are municipal water districts considered under NAICS 22?
A: Yes, municipal water supply and sewage treatment services fall under this NAICS code.

Q5: Can private companies involved in steam supply fall under NAICS 22?
A: Yes, steam supply services for heating and industrial processes are included under this sector.

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Conclusion

NAICS Code 22 – Utilities is a fundamental classification that encompasses critical services powering everyday life and business operations. Whether you're involved in electric power, natural gas, water, or sewage, understanding this sector's scope and requirements can unlock significant opportunities, especially in government contracting. For those seeking to navigate or enter the utilities market, staying informed about NAICS classifications and size standards is a strategic advantage.

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Keywords: NAICS Code 22, Utilities sector, Electric power generation, Natural gas distribution, Water supply services, Sewage treatment, SBA size standards, Government contracting utilities, Utility business activities