A brief historical overview is followed by a description and analysis of the components of the electric power system-generation, transmission, and distribution. The circumstances and specifics of the systems in Minnesota are outlined with supporting charts and graphs. A comparison of the California and Minnesota electric power industries is presented including a summary of deregulation efforts in each state. Results obtained from simulation of electricity consumption in Minnesota from 1997 to 2001 using the Arena software are presented. Recommendations for designing future power supply capacities and demand requirements are made, based on analysis of results from simulation.