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Electricity sector of the United States

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The United States has the second largest electricity sector in the world, with 4,178 Terawatt-hours of generation in 2023.[2] In 2023 the industry earned $491b in revenue (1.8% of GDP) at an average price of $0.127/kWh.[3]

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Net electricity generation by energy source for 2023[1]

  Negative increase Natural gas (42.3%)
  Steady Nuclear (18.2%)
  Decrease Coal (15.9%)
  Negative increase Wind (10.0%)
  Decrease Hydro (5.6%)
  Steady Solar (5.6%)
  Steady Biomass (1.1%)
  Neutral decreaseOther (0.3%)
United States electricity production by type

There are three major synchronous electrical grids in the continental US: the Eastern Interconnection, the Western Interconnection and the Texas Interconnection. Within these physical grids, there are Independent System Operators and Regional transmission organizations, which are not-for-profit organizations that operate an area of the grid and are obliged to provide indiscriminate access to various suppliers (e.g. power plant owners, transmission line providers) to promote competition. Some areas instead have a vertically integrated utility like Southern Company where everything is done by one company.

The U.S. electricity sector is regulated by different public institutions with some functional overlaps. The federal government sets general policies through the Department of Energy. Economic regulation of the distribution segment is a state responsibility, usually carried out through Public Utilities Commissions; the inter-state transmission segment is regulated by the federal government through the Federal Energy Regulatory Commission.

Electricity generation has been approximately flat in the last ten years,[4] but with significant changes in composition over that time. In 2013 coal was 38.8% of generation, natural gas was 27.6%, nuclear was 19.4%, wind was 4.1%, hydro was 6.6%, and solar was 0.2%. Because of this shift, CO2 emissions have gone down by 30%.[5]

Electricity generation

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See also: List of power stations in the United States
 
Current power plants map from the U.S. Energy Information Administration

In 2023, US generation

scale installed electricity generation summer capacity[6] in the United States was 1161.43 gigawatts (GW), up 15.57 GW from 2021. The main energy sources for electricity generation include

  • Thermal/Fossil: 733.2 GW up 1.38 GW (+0.02%) from 2021
  • Wind: 141.4 GW up 8.65 GW ( +6.52%) from 2021
  • Nuclear: 94.66 GW down 0.89 GW (-0.93%) from 2021
  • Hydropower: 80.07 GW up 0.16 GW (0.2%) from 2021
  • Solar:143.8 GW up 11.43 GW (+18.41%) from 2021
  • Solar (small scale estimate):39.83 GW up 6.75 GW (+20.4%) from 2021

Actual USA utility scale electricity generation[7] in 2022 was 4230.723 terawatt-hours (TWh) and was up 134.883 TWh (3.29%) from 2021. The USA also imported 56.97 TWh and exported 15.758 TWh:[16] making a total of 4271.88 TWh for consumption, up 114.78 TWh (2.78%) from 2021.

Electricity generation was primarily from the following sources:

  • Thermal/Fossil : 2553.23 TWh, up 45.47 TWh (+1.8%) from 2021
  • Nuclear: 771.54 TWh, down 8.11 TWh ( -1.0%) from 2021
  • Wind:434.3 TWh, up 56.1 TWh ( +14.83%) from 2021
  • Hydropower: 254.70 TWh, up 2.6 TWh (+3.2%) from 2021
  • Solar: 143.8 TWh up 28.54 TWh (+24.76%) from 2021
  • Solar(small scale estimate): 61.28 TWh up 12.12 TWh (+24.6%) from 2021

The share of coal and nuclear in energy generation is much higher than their share in installed capacity, because coal and nuclear plants provide base load and thus are running longer hours than natural gas and petroleum plants which typically provide peak load, while wind turbines and solar plants produce electricity when they can and natural gas fills in as required to compensate.

  •  
    State Contribution to US Net Electric Generation
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    State Net Generation by Fuel Source
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    States who IMPORT States who EXPORT
  •  
    US electricity production by source
  •  
    State Electric Energy Fuel Use %
  •  
    10 yr chart of fuel mix for electric
Yearly electric energy generation by fuel source (TWh)[8][9][10]
Year Fossil Fuel Nuclear Renewable Misc Total
Coal Oil Gas sub
total 		Hydro Geo
thermal 		Solar Wind Wood Bio (other) sub
Total
2023[11] 675.12 16.23 1,817.84 774.87 245.00 16.37 165.53 421.14 31.62 15.59 4,183.271
2022* 831.51 22.93 1,698.79 2,553.23 771.54 254.79 16.09 143.79 434.30 35.46 16.38 900.82 46.29 4,271.88
Proportion 2022* 19.46% 0.54% 39.77% 59.77% 18.06% 5.96% 0.38% 3.37% 10.17% 0.83% 0.38% 21.09% 1.08% 100.0%
2021* 898.0 19.17 1,590.56 2,507.76 779.65 251.59 15.98 115.26 378.2 36.46 17.79 815.27 46.34 4,149.01
Proportion 2021* 21.64% 0.46% 38.34% 60.44% 18.79% 6.06% 0.39% 2.78% 9.12% 0.88% 0.43% 19.65% 1.12% 100.0%
2020 773.393 17.341 1,635.985 2,426.719 789.879 285.274 15.890 89.199 337.938 36.210 18.493 783.004 54.848 4,054.450
Proportion 2020 19.08% 0.43% 40.35% 59.85% 19.48% 7.04% 0.39% 2.20% 8.33% 0.89% 0.46% 19.56% 1.35% 100.0%
2019 964.957 18.341 1,598.405 2,581.703 809.409 287.874 15.473 71.937 295.882 38.543 18.964 728.673 47.114 4,166.900
2018 1,149.49 25.23 1,482.40 2,657.11 807.08 292.52 15.97 63.83 272.67 40.94 20.90 706.82 51.53 4,222.532
2017 1,205.84 21.39 1,308.89 2,536.12 804.95 300.33 15.93 53.29 254.30 41.15 21.61 686.61 62.90 4,090.58
2016 1,239.15 24.20 1,391.11 2,654.47 805.69 267.81 15.83 36.05 226.99 40.95 21.81 609.45 67.49 4,137.10
2015 1,352.40 28.25 1,346.60 2,727.25 797.18 249.08 15.92 24.89 190.72 41.93 21.70 544.24 75.61 4,144.27
Proportion 2015 32.63% 0.68% 32.49% 65.81% 19.24% 6.01% 0.38% 0.60% 4.6% 01.01% 0.52% 13.13% 1.82% 100.0%
2014 1,581.71 30.23 1,138.63 2,750.57 797.17 259.37 15.88 17.69 181.655 42.34 21.65 538.58 60.50 4,146.2
2013 1,581.12 27.16 1,137.69 2,745.97 789.02 268.57 15.78 9.04 167.84 40 20.83 522.07 55.64 4,112.7
2012 1,514.04 23.19 1,237.79 2,775.02 769.33 276.24 15.56 4.33 140.82 37.8 19.82 494.57 56.1 4,095
2011 1,733.4 30.2 1,025.3 2,788.9 790.2 319.4 15.3 1.82 120.2 37.4 19.2 513.32 46 4,138.4
2010 1,847.3 37.1 999.0 2,883.4 807.0 260.2 15.2 1.21 94.7 37.2 18.9 427.4 33.3 4,151.0
Proportion 2010 44.5% 0.9% 24.1% 69.5% 19.4% 6.3% 0.37% 0.029% 2.3% 0.9% 0.5% 10.3% 0.8% 100.0%
2009 1,755.9 38.9 931.6 2,726.5 798.9 273.4 15.0 0.89 73.9 36.1 18.4 417.7 41.4 3,984.4
2008 1,985.8 46.2 894.7 2,926.7 806.2 254.8 14.8 0.86 55.4 37.3 17.7 380.9 38.3 4,152.2
2007 2,016.5 65.7 910.0 2,992.2 806.4 247.5 14.6 0.61 34.5 39.0 16.5 352.7 36.6 4,188.0
2000 1,966 111 615 2,692 754 260 14 0.49 5.6 37.6 23 318.7 38.6 3,836
Proportion 2000 51.3% 2.9% 16.0% 70.2% 19.7% 7.2% 0.37% 0.013% 0.15% 1.0% 0.6% 9.3% 0.9% 100.0%
1999 1,881 118 571 2,570 728 319.5 14.8 0.50 4.5 37 22.6 392.8 55 3,723.8
  • Gas includes natural gas and other gases.
  • Solar includes photovoltaics and thermal, excludes small scale photovoltaics.
  • Misc includes misc generation, pumped storage, and net imports.
  • Bio Other includes waste, landfill gas, and other.
  • Hydro excludes pumped storage (not an energy source, used by all sources, other than hydro).
  • Total includes net imports.
  • 2021 and 2022 data is from Electric Power Annual 2022

The following tables summarize the electrical energy generated by fuel source for the United States. Electric Power Annual[12] for 2022 data.

Electricity generation in the United States in 2022[13][14]
Power Source Plants Summer Capacity (GW) % of total Capacity Capacity factor Annual Energy (billion kWh) % of Total U.S.
Coal 242 189.3 16.30% 0.50 831.51 19.46%
Nat Gas+ 2106 504.25 43.42% 0.38 1698.79 39.77%
Nuclear 54 94.66 8.15% 0.93 771.54 18.06%
Hydro 1445 80.07 6.89% 0.36 254.79 5.96%
Other Renewables 7084 228.92 19.71% 0.32 646.03 15.12%
Petroleum 1084 30.76 2.65% 0.09 22.93 0.54%
Other 483 10.41 0.90% 0.12 11.11 0.26%
Storage 40 23.04 1.98% -0.03 -6.03 -0.14%
Net Imports 41.21 0.96%
Total 12538 1161.43 100.00% 0.42 4271.88 100.00%
  •  
    Electric Energy Generation @ Plants 2018–2022
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    Capacity Factors @ Plants 2018–2022
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    Electric Energy Plant Comparisons 2022 (B kWh) Normalized for 1GW Capacity

Fossil fuel

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See also: Coal power in the United States, List of coal-fired power stations in the United States, Natural gas in the United States, and List of natural gas power stations in the United States

Fossil fuels—mainly coal and natural gas—remain the backbone of electricity generation in the U.S., accounting for 68% of installed generation capacity in 2010 and 63.1% in 2022. Coal production has fallen significantly since 2007 with most of the losses being replaced by natural gas, but also a growing fraction of non-hydroelectric renewables.

  •  
    NATURAL GAS+ Generated Electronic Energy 2022–2021
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    COAL Generated Electric Energy Profile 2022–2021
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    PETROLEUM Generated Electric Energy Profile 2022–2021
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    10 yr Fossil Fuel Generated Electric Energy Profile 2022–2012

In 2007 the Department of Energy estimated the planned additional capacity for 2008–12 at 92 GW, most of which to be fueled by natural gas (48 GW) and coal (19 GW).[15]

Nuclear power

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See also: Nuclear power in the United States
 
10 Yr Nuclear Generated Electric Energy Profile 2022-2012
 
NUCLEAR Generated Electric Energy Profile 2022-2021

As of 2007 in the United States, there are 104 commercial nuclear reactors in the US, generating approximately 20% of the nation's total electric energy consumption. For many years, no new nuclear plants have been built in the US. However, since 2005 there has been a renewed interest in nuclear power in the US. This has been facilitated in part by the federal government with the Nuclear Power 2010 Program of 2002.[16] and the Energy Policy Act.[17][18] As of March 9, 2009, the U.S. Nuclear Regulatory Commission had received applications for permission to construct 26 new nuclear power reactors[19] However, as of 2013 most of the new applications had been abandoned due to the low cost of electricity generated with natural gas which had become available at cheap prices due to the boom in hydraulic fracturing; electricity produced using natural gas being 4 cents per kilowatt-hour versus 10 cents, or more, for nuclear.[20]

Renewable energy

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See also: Renewable energy in the United States, Solar power in the United States, Wind power in the United States, List of reservoirs and dams in the United States, and Category:Hydroelectric power plants in the United States

The following table summarizes the electrical energy generated by renewable fuel sources for the US. Data was obtained from Electric Power Annual 2022.[21]

 
Growth in renewable-source electricity generation has been led by wind and solar

[22]

Electric Production by Renewables in 2022[23]
Power Source Summer Capacity (GW) % of Renewable Capacity % of Total Capacity Capacity Factor Annual Energy (billion kWh) % of Renewable Energy % of U.S. Generation
Wind 141.4 45.74% 12.17% 0.35 434.3 48.21% 10.17%
Hydro 80.07 25.90% 6.87% 0.36 254.79 28.28% 5.96%
Solar 72.86 23.57% 6.27% 0.23 143.8 15.96% 3.37%
Biomass 12.13 3.92% 1.04% 0.49 51.84 5.75% 1.21%
Geothermal 2.65 0.86% 0.23% 0.69 16.09 1.79% 0.38%
Total 309.11 100.00% 26.61% 0.33 900.82 100.00% 21.09%

Note: Biomass includes wood and wood derived fuel, landfill gas, biogenic municipal solid waste and other waste biomass.

  •  
    Wind Generated Electric Energy Profile 2022–2021
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    HYDRO Generated Electric Energy Profile 2022–2021
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    Solar (Utility) Generated Electric Energy Profile 2022–2021
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    Wood Generated Electric Energy Profile 2022–2021
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    Other Biomass Generated Electric Energy Profile 2022–2021
  •  
    Geothermal Generated Electric Energy Profile 2022–2021
  •  
    Renewables Electric Energy Generation Profile
 
Timeline of electricity from renewable sources in the United States

The development of renewable energy and energy efficiency marks "a new era of energy exploration" in the United States, according to President Barack Obama.[24] In a joint address to the Congress on February 24, 2009, President Obama called for doubling renewable energy within the next three years.[25] From the end of 2008 to the end of 2011 renewable energy increased by 35% and from the end of 2008 till the end of 2014, 41.4%. In reality it took twelve years instead of three to double as 2020 saw a 100% increase from 2008.

Renewable energy accounted for more than 22.4% percent of the domestically produced electric energy used in the United States in 2022, up from 12.2% in 2012. All renewables have increased by 1.92X in the last decade. Wind production in 2022 was 10.17% of all production and has grown 2.9X over the last decade. Over this same time period solar( including small scale) has increased by 13.1X and now provides 3.37% of US electric energy needs. Utility scale solar has grown 11.1X over the last decade and in the last eight years of estimating small scale solar it has grown by 5.4X.

According to a report by the Interior Department, U.S. wind power – including off-shore turbines – could more than meet U.S. electricity needs.[26] The Department of Energy has said wind power could generate 20% of US electricity by 2030.[27][28][29]

Several solar thermal power stations, including the new 64 MW Nevada Solar One, have also been built. The largest of these solar thermal power stations is the SEGS group of plants in the Mojave Desert with a total generating capacity of 354 MW, making the system the largest solar plant of any kind in the world.[30]

Electricity consumption

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Electricity consumption data in this section is based upon data mined from US DOE Energy Information Administration/Electric Power Annual 2022 files[31] In 2022 the total US consumption of electricity was 4,271.88 terawatt-hours (TWh). Consumption was up from 2021, by 122.87 TWh or +2.96%. This is broken down as:

  • Residential customers (139.894 million) directly consumed 1,509.23 TWh, or 35.23% of the total. This was up 38.74 TWh (+2.6%) from 2021. An average residential customer used 899 kWh/month and with the average US residential cost of $0.1504/kWh the average monthly electrical bill would be $135.27, up $14.25 (+11.77% from 2021.[31]
  • Commercial customers (19.258 million) directly consumed 1,390.87 TWh or 32.56% of the total. This was more (62.43 TWh) than in 2021 with over 155 thousand new customers. An average commercial customer used 6,019 kWh/month and with the average US commercial electric cost of $0.1241/kWh the average monthly electrical bill would be $746.96 up $96.76 (+14.9%) from 2021 .[31] Demand from data centers (4% of total in 2022) and artificial intelligence trainers, new/expanded clean-tech factories, and crypto-mining became a significant component of overall demand in the 2020s. Affected states include Georgia, Texas, Virginia, Arizona, Oregon, Maryland, Kansas, Nebraska, Wisconsin, and South Carolina.[32] Some large consumers are building their own energy production facilities independent of the grid.
  • Industrial customers (1,049.983 thousand up 27.8 thousand from 2021) directly consumed 1020.486 TWh or 23.89% of the total. This was a more (19.85 TWh) than in 2021 (+2%).
  • Transportation customers (86) directly consumed 6.599 TWh or 0.15% of the total. This was a little higher by 0.265 TWh(+4.1%) than in 2021 TWh) .
  • System loss throughout the total electrical grid infrastructure by direct use of the suppliers (139.726 TWh)[33] and for transmission and other system losses and for unaccounted for loads (204.989 TWh) amounts to 344.719 TWh or 8.07% of the total which is down by 0.2% from 2021. Thus, the US electric distribution system is 91.93% efficient and efficiency has improved slightly over the last year.[34]

In addition from consumption from the electrical grid, the US consumers consumed an estimated additional 61.282 (up 12.12 TWh from 2021) TWh from small scale solar systems.

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    US Electric Energy Consumption by User Community 2013–2022
  •  
    US Electric Energy Profile 2022–2021
  •  
    US Electric Customers 2012–2022
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    US Residential Customers 2022
  •  
    kWh Electric Costs (Cents/kWh) by State
  •  
    Average Residential Electric Energy Consumption by State 2022
  •  
    State Average Residential Electricity Cost in 2022
  •  
    10 Yr Average Residential kWh costs by Region
  •  
    10 Yr Average Residential kWh costs for Several States

Consumption per person

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US per Capita Consumption kWh/yr

Electricity consumption per person (per capita) is based upon data mined from US DOE Energy Information Administration/Electric Power Annual 2022 files[35] Population[36] data is from Demographics of the United States. Per capita consumption in 2022 is 12,809 kWh. This is up 351 kWh from 2021 and down 1.8% from a decade ago and down 7.2% from its peak in 2007. The following table shows the yearly US per capita consumption by fuel source from 1999 to 2022.

The following table used the first column from the Demographics of the United States#Vital statistics table for population, and generation from Electric Power Annual. Technically this means that "consumption" includes transmission losses, etc., because the values in the table were all calculated from table ES1. Summary Statistics for the United States. Also since 2016 the small scale solar estimate is included in the solar contribution.

Yearly US Per Capita Consumption (kWh) by Fuel Source 1999–2022
Year Population
million 		Fossil Fuel Nuclear Renewable Misc Total
Coal Oil Gas Subtotal Hydro Geo Solar Wind Wood Other Bio Subtotal
2022 338.290 2,458 68 5,022 7,547 2,281 753 48 606 1284 105 48 2,663 137 12,809
2021 336.998 2,665 57 4,720 7,442 2,314 747 47 488 1122 108 53 2,419 138 12,458
2020 331.449 2,333 52 4,936 7,322 2,383 861 48 352 1020 109 56 2,362 165 12,316
2019 328.240 2,943 57 4,861 7,861 2,466 834 49 327 914 121 57 2,302 143 12,772
2018 326.980 3,515 77 4,534 8,126 2,468 895 49 285 834 125 64 2,162 158 13,004
2017 325.719 3,702 66 4,018 7,786 2,471 922 49 237 781 126 66 2,108 193 12,632
2016 323.128 3,835 75 4,305 8,215 2,493 829 49 170 702 127 68 1,886 209 12,861
2015 320.897 4,215 88 4,196 8,499 2,484 776 50 78 594 131 68 1,696 236 12,915
2014 318.857 4,961 95 3,571 8,626 2,500 813 50 55 570 133 68 1,689 190 13,005
2013 316.129 5,001 86 3,599 8,686 2,496 850 50 29 531 127 66 1,651 176 13,010
2012 313.874 4,824 74 3,944 8,841 2,451 880 50 14 449 120 63 1,576 179 13,047
2011 313.85 5,523 96 3,267 8,886 2,518 1,018 49 6 383 119 61 1,636 147 13,187
2010 309.33 5,972 120 3,230 9,321 2,609 841 49 3.9 306 120 61 1,382 108 13,419
2009 307.01 5,719 127 3,034 8,881 2,602 891 49 2.9 241 117 60 1,361 135 12,978
2008 304.38 6,524 152 2,939 9,616 2,649 837 49 2.8 182 123 58 1,252 126 13,642
2007 301.58 6,686 218 3,018 9,922 2,674 821 49 2.0 114 129 55 1,170 121 13,887
2006 298.59 6,666 215 2,782 9,663 2,636 969 49 1.7 89 130 54 1,292 83 13,675
2005 295.75 6,806 413 2,618 9,838 2,644 914 50 1.9 60 131 52 1,209 105 13,796
2004 293.05 6,751 413 2,475 9,639 2,691 916 51 2.0 48 130 53 1,199 58 13,588
2003 290.33 6,798 411 2,292 9,502 2,631 950 50 1.8 39 129 54 1,224 41 13,397
2002 287.80 6,717 329 2,441 9,486 2,710 918 50 1.9 36 134 52 1,193 90 13,479
2001 285.08 6,679 438 2,274 9,390 2,697 761 48 1.9 24 123 51 1,009 88 13,185
2000 282.17 6,968 394 2,179 9,542 2,672 977 50 1.7 20 133 82 1,263 117 13,594
1999 279.04 6,741 423 2,045 9,209 2,610 1,145 53 1.8 16 133 81 1,430 96 13,345
  • Gas includes natural gas and other gases.
  • Solar includes photovoltaics and thermal and includes small scale solar.
  • Misc includes misc generation, pumped storage, and net imports.
  • Bio Other includes waste, landfill gas, and other.
  • Hydro excludes pumped storage (not an energy source, used by all sources, other than hydro).
  • Total includes net imports and calculated small scale solar (since 2016)

Grid storage

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USA has 21.9 GW of pumped-storage hydroelectricity[37] and 6.6 GW of grid batteries as of 2022.[38] They are around 80% efficient (20% loss), so they are net consumers of electricity. Pumped storage generated around 1 TWh/month in winter, and around 2.5 TWh/month in summer as of 2021.[37]

Responsibilities in the electricity sector

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The fragility and reliability of the electrical grid is a major public policy concern. This 2019 assessment reiterates concerns "that a prolonged collapse of this nation's electrical grid—through starvation, disease, and societal collapse—could result in the death of up to 90% of the American population".

Policy and regulation

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See also: List of United States energy acts and Category:Public utilities commissions of the United States

Policy for the electricity sector in the United States is set by the executive and legislative bodies of the federal government and state governments. Within the executive branch of the federal government the Department of Energy plays a key role. In addition, the Environmental Protection Agency is in charge of environmental regulation and the Federal Trade Commission is in charge of consumer protection and the prevention of anti-competitive practices.

Key federal legislation related to the electricity sector includes:

Many state governments have been active in promoting renewable energy. For example, in 2007 25 states and the District of Columbia had established renewable portfolio standards (RPS).[39] There is no federal policy on RPS.

The Federal Energy Regulatory Commission is in charge of regulating interstate electricity sales, wholesale electric rates, and licensing hydropower plants. Rates for electricity distribution are regulated by state-level Public Utilities Commissions or Public Services Commissions.

Deregulation and competition

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Deregulation of the electricity sector consists in the introduction of competition and the unbundling of vertically integrated utilities in separate entities in charge of electricity generation, electricity transmission, electricity distribution and commercialization. The deregulation of the electricity sector in the U.S. began with the Energy Policy Act of 1992 which removed obstacles for wholesale competition. In practice, however, regulation has been unevenly introduced between states. It began in earnest only from 1996 onwards when the Federal Energy Regulatory Commission issued orders that required utilities to provide transmission services "on a reasonable and non-discriminatory basis". In some states, such as in California, private utilities were required to sell some of their power plants to prevent concentration of market power.[40]

As of April 2014, 16 U.S. states – Connecticut, Delaware, Illinois, Maine, Maryland, Massachusetts, Michigan, Montana, New Hampshire, New Jersey, New York, Ohio, Oregon, Pennsylvania, Rhode Island, and Texas – and the District of Columbia have deregulated their electricity markets in some capacity. Additionally, seven states – Arizona, Arkansas, California, Nevada, New Mexico, Virginia, and Wyoming – started electricity deregulation in some capacity but have since suspended deregulation.[41] The deregulation of the Texas electricity market in 2002 is one of the better-known examples. The result has been that the different states with in United States have a wide spectrum of different levels of deregulation. Some states only allow large commercial customers to choose a different supplier, some allow all consumers to choose. Contrary to the largely similar methods of deregulation for natural gas, different states have taken very different approaches to electricity deregulation.[42]

Service provision

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Electric utilities in the U.S. can be both in charge of electricity generation and electricity distribution. The electricity transmission network is not owned by individual utilities, but by companies and organizations that are obliged to provide indiscriminate access to various suppliers to promote competition. In 1996, there were 3,195 electric utilities in the United States and 65 power marketers. Of these, 2,020 were publicly owned (including 10 Federal utilities), 932 were rural electric cooperatives, and 243 were investor-owned utilities. Fewer than 1,000 utilities are engaged in power generation.[43]

See also: List of United States electric companies

Generation

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About 80% of the electricity in the U.S. is generated by private ("investor-owned") utilities. The remaining electricity is produced by the public sector. This includes federal agencies such as the Tennessee Valley Authority (producing mainly nuclear and hydropower), and Power Marketing Administrations of the Department of Energy, one of which is the Bonneville Power Administration (in the Pacific Northwest)(hydropower). It also includes municipal utilities and utility cooperatives.

The largest private electric producers in the United States include:

Transmission

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Main article: North American power transmission grid

There are two major wide area synchronous grids in North America, the Eastern Interconnection and the Western Interconnection. Besides this there are two minor power grids in the U.S., the Alaska Interconnection and the Texas Interconnection. The Eastern, Western and Texas Interconnections are tied together at various points with DC interconnects allowing electrical power to be transmitted throughout the contiguous U.S., parts of Canada and parts of Mexico. The transmission grids are operated by transmission system operators (TSOs), not-for profit companies that are typically owned by the utilities in their respective service area, where they coordinate, control and monitor the operation of the electrical power system. TSOs are obliged to provide non-discriminatory transmission access to electricity generators and customers. TSOs can be of two types: Independent System Operators (ISOs) and Regional Transmission Organizations (RTOs). The former operates within a single state and the latter covers wider areas crossing state borders.[citation needed]

In 2009 there were four RTOs in the U.S.:[citation needed]

There are also three ISOs:

 
The three major and two minor NERC Interconnections, and the nine NERC Regional Reliability Councils.

RTOs are similar, but not identical to the nine Regional Reliability Councils associated in the North American Electric Reliability Corporation (NERC), a non-profit entity that is in charge of improving the reliability and security of the bulk power system in the U.S., Canada and the northern part of Baja California in Mexico. The members of the Regional Reliability Councils include private, public and cooperative utilities, power marketers and final customers. The Regional Reliability Councils are:

The FERC distinguishes between 10 power markets in the U.S., including the seven for which RTOs have been established, well as:

  • Northwest
  • Southwest (covering Arizona, most of New Mexico and Colorado)
  • Southeast[44]

ISOs and RTOs were established in the 1990s when states and regions established wholesale competition for electricity.

See also: Category:Electric power transmission systems in the United States

Distribution

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About 75% of electricity sales to final customers are undertaken by private utilities, with the remainder being sold by municipal utilities and cooperatives.

See also: List of United States electric companies

Economic and financial aspects

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Electricity prices for each State from March 2021 – March 2022
 
US Electricity Prices
  US average
  North East
  West
  Midwest
  South
 
Cost of Electricity by Metropolitan Area
  San Diego
  San Francisco
  Boston
  Los Angeles
  New York City
  Seattle
 
Sources of costs for US electric distribution systems

Tariffs and affordability

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Electricity price map of the United States

In 2008 the average electricity tariff in the U.S. was 9.82 ¢/kWh, up from 6.9 ¢/kWh in 1995. Residential tariffs were somewhat higher at 11.36 ¢/kWh, while commercial tariffs stood at 10.28 ¢/kWh and industrial tariffs at 7.01 ¢/kWh.[45] The cost of supplying high-voltage power to high-volume industrial customers is lower than the cost of providing low-voltage (120 V) power to residential and commercial customers.

In 2006–07 commercial electricity tariffs in the U.S. (9.28 ¢/kWh) were higher than in Australia (7.1 ¢/kWh), Canada (6.18 ¢/kWh) that relies mainly on hydropower or in France (8.54 ¢/kWh) that relies heavily on nuclear power, but lower than in Germany (13.16 ¢/kWh), Italy (15.74 ¢/kWh) or the UK (11.16 ¢/kWh) that all rely to a larger degree on fossil fuels, all compared at purchasing power parity.[46]

Residential tariffs vary significantly between states from 6.7 ¢/kWh in West Virginia to 24.1 ¢/kWh in Hawaii. An important factor that influences tariff levels is the mix of energy sources used in power generation. For example, access to cheap federal power from hydropower plants contributes to low electricity tariffs in some states.

Average residential electricity consumption in the U.S. was 936 kWh/month per in 2007, and the average bill was US$100/month. Average residential consumption varies considerably between states from 530 kWh/month in Maine to 1,344 kWh/month in Tennessee. Factors that influence residential energy consumption are climate, tariffs and efforts to promote energy conservation.

Revenues

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Total revenue from the sale of electricity in 2008 was US$344bn, including US$148bn from residential customers, US$129bn from commercial customers and US$66bn from industrial customers.[47] Many large industries self-generate electricity and their electricity consumption thus is not included in these figures.

Investment

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Financing

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Most investments in the U.S. electricity sector are financed by private companies through debt and equity. However, some investments are indirectly financed by taxpayers through various subsidies.

Subsidies and tax incentives

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There is a large array of subsidies in the U.S. electricity sector ranging from various forms of tax incentives to subsidies for research and development, feed-in tariffs for renewable energy and support to low-income households to pay their electric bills. Some subsidies are available throughout the U.S., while others are only available in some states.

Tax incentives include federal and state tax deductions and tax breaks. Tax incentives can be directed at consumers, such as for the purchase of energy-efficient appliances or for solar energy systems, small wind systems, geothermal heat pumps, and residential fuel cell and microturbine systems.[48] Tax incentives can also be directed at electricity producers, in particular for renewable energy.

The Low Income Home Energy Assistance Program (LIHEAP) received federal funding of $5.1 billion in Fiscal Year 2009.[49] It is funded mainly by the federal government through the U.S. Department of Health and Human Services, Administration for Children and Families, and is administered by states and territories. While some of its funding is for fuel for heating, some is also used to cover electricity bills for both heating and cooling.

In April 2009, 11 U.S. state legislatures were considering adopting feed-in tariffs as a complement to their renewable electricity mandates.[50]

See also

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References

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  26. ^ Tankersley, Jim (April 3, 2009). "Wind turbines could more than meet U.S. electricity needs, report says". Los Angeles Times.
  27. ^ http://www1.eere.energy.gov/windandhydro/pdfs/1_overview-demeo.pdf [bare URL PDF]
  28. ^ Michael Cooney (May 13, 2008). "A mighty wind: Feds want wind power to generate 20% of US electricity by 2030". Network World.
  29. ^ "20% Wind Energy by 2030: Changing America's Electricity Supply | Environmental and Energy Study Institute". Archived from the original on April 23, 2009. Retrieved August 22, 2009.
  30. ^ "Save Electricity". Therightway.in. Archived from the original on March 18, 2019.
  31. ^ a b c "Electric Power Annual"[3] retrieved October 30, 2023
  32. ^ Halper, Evan (March 7, 2024). "Amid explosive demand, America is running out of power". Washington Post. Retrieved March 10, 2024.
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  37. ^ a b "Utility-Scale Batteries & Pumped Storage Return About 80% of the Electricity they Store". CleanTechnica. US Energy Information Administration. February 12, 2021.
  38. ^ "4.2GW of battery storage deployed in US last year". Energy Storage News. March 4, 2022.
  39. ^ International Energy Agency:Energy Policies of IEA Countries – the United States of America- 2007 Review
  40. ^ Timothy J. Brennan, Karen L. Palmer, Salvador A. Martinez:Alternating Currents.Electricity Markets and Public Policy, Resources for the Future, Washington D.C., 2002, p. 26-32
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  44. ^ FERC:Electric Power Markets: National Overview Archived September 23, 2019, at the Wayback Machine
  45. ^ http://www.eia.doe.gov/cneaf/electricity/epm/table5_3.html Average Retail Price of Electricity to Ultimate Customers: Total by End-Use Sector
  46. ^ NUS Consulting Survey Group's International Electricity Report and Cost Survey 2006–2007, quoted in Power Engineering International, July 2007:GLOBAL ELECTRICITY PRICING: Ups and downs of global electricity prices Archived September 6, 2009, at the Wayback Machine
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  48. ^ Department of Energy:Consumer Energy Tax Incentives Archived July 28, 2011, at the Wayback Machine
  49. ^ Department of Health and Human Services:LIHEAP Clearinghouse Archived May 28, 2009, at the Wayback Machine
  50. ^ Transatlantic Climate Policy Group Archived March 11, 2010, at the Wayback Machine: Feed-in Tariffs in America: Driving the Economy with Renewable Energy Policy that Works Archived July 18, 2011, at the Wayback Machine. Retrieved April 8, 2009
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