U.S. Electricity Consumption.

Residential retail sales of electricity grew by an estimated 7.6 percent in the first quarter of 2010 compared with the same period last year. Much of this growth was the consequence of the cold weather experienced during January and February in the South, where many households use electricity for space heating. EIA expects residential electricity sales to grow by about 7 percent during the third quarter of 2010 as summer temperatures are expected to return to normal levels after the cool summer experienced last year. Total consumption of electricity across all sectors is projected to grow by 2.9 percent during 2010 and by 1.2 percent next year .

U.S. Electricity Generation. Last year, electricity generation from coal declined by 10.8 percent while generation from natural gas increased by 5.1 percent as lower natural gas prices motivated fuel switching in the electric power sector. Although natural gas prices are projected to be higher this year than last year, EIA still expects significant incentives to remain for electricity generation from natural gas, particularly in the South. EIA projects total natural gas generation in the electric power sector to grow by 2.0 percent in 2010. Low snow pack in the Northwest indicates hydropower generation will be low during 2010, falling by an estimated 7.6 percent for the entire United States compared with last year.

U.S. Electricity Retail Prices. The average U.S. residential electricity price during the first quarter of 2010 was estimated to be about 10.8 cents per kWh, almost 3 percent lower than in the same period last year. However, the annual average residential electricity price changes only slightly over the forecast period, averaging 11.5 cents per kWh in both 2009 and 2010 and then rising to 11.7 cents per kWh in 2011 because of higher coal and natural gas generation fuel costs (U.S. Residential Electricity Prices Chart).

Want to keep up to date with all our latest news and information?
Subscribe to receive FREE TIPS, all new Radio/Podcast Episodes and Videos that will help you start Dropping your Energy Bill!
Enter your email below to join a world of new knowledge and savings!