Home > EIA Brochures > Electric Power Annual 2007: A Summary

Click on image to download a printer-friendly version.

Electric Power Annual
2007

A Summary

Figure 1. U.S. Electric Power Industry Net Generation, 2007

Source: Energy Information Administration, Electric Power Annual 2007.

• In 2007, net generation of electric power increased 2.3 percent to 4,157 billion kilowatthours (kWh) from 4,065 billion kWh in 2006.

• Net generation from the three leading energy sources - coal, natural gas, and nuclear energy - reached all time highs during 2007. Coal-fired generation totaled 2,016 million megawatthours (MWh), natural-gas fired generation totaled 897 million MWh, and nuclear-fired generation totaled 806 million MWh in 2007, accounting for almost 90 percent of total generation.

• Since 1996, natural gas-fired generation has steadily increased from 455 million MWh to 897 million MWh, and accounted for 21.6 percent of total generation in 2007.

• In 2007, generation at nuclear plants increased 2.4 percent from 787 million MWh in 2006 to 806 million MWh. Despite the fact that no new nuclear units have been constructed over the past 10 years, the annual average growth has been 1.6 percent since 1996. The continued growth is due to improved capacity utilization and the resumption of commercial operations at Tennessee Valley Authority’s Brown Ferry Unit 1, which had previously been shut down for over 20 years.

• Petroleum-fired generation increased 2.5 percent to 66 million MWh accounting for 1.6 percent of total electric power generation.

• In 2007, conventional hydro-electric generation declined by 14.4 percent to 248 million MWh reaching its lowest level since 2001. This decline was due largely to reduced precipitation and drought conditions.

• Petroleum-fired generation increased 2.5 percent in 2007 despite the fact that cost increased significantly. The tight supply and increased global demand contributed to the rising price.

Figure 2. U.S. Electric Power Industry Net Summer Capacity, 2007

Source: Energy Information Administration. Electric Power Annual 2007.

• Total net summer capacity in the United States as of December 31, 2007 was 995 gigawatts (GW), a 1 percent increase from 2006.

• In 2007, natural gas and coal represented the largest shares of net summer capacity, accounting for 39.5 and 31.4 percent, respectively. However, natural gas-fired capacity increased by 1 percent to 393 GW, and coal-fired capacity was virtually the same as in the prior year at 313 GW.

• Nuclear and hydroelectric (including pumped storage) net summer capacity remained virtually unchanged at 100 GW, respectively, and each accounted for about 10 percent of total net summer capacity.
  

• Petroleum-fired capacity decreased 3.5 percent since last year, totaling 56 GW and accounted for 5.6 percent of total net summer capacity.

• Planned net summer capacity additions projected to be placed in service for 2008 totaled 20 GW. Of the total of projected capacity additions, natural gas and wind capacity accounted for the largest shares at 8.4 and 9.8 GW, respectively.

• In 2007, other renewables accounted for 30 GW or 3.0 percent of total net summer generating capacity, an increase of 25 percent compared to the 24 GW reported for 2006. Other renewables capacity has steadily increased since 2001 from 16 GW and almost doubled its 1997 total of 15.4 GW.

• A total of 211 generators retired in 2007, accounting for 4 GW of net summer generating capacity.

• In 2007, the cost of all fossil fuels (coal, natural gas and petroleum) at electric power plants was $3.23 per MMBtu an increase of 7 percent from $3.02 per MMBtu in 2006. The delivered cost of coal was $1.77 per million British thermal units (MMBtu), petroleum was $7.17 per MMBtu, and natural gas was $7.11 per MMBtu compared to the 2006 prices of $1.69, $6.23, and $6.94 per MMBtu, respectively.

• Receipts of coal and petroleum at electric power plants decreased in 2007. Coal receipts decreased slightly by 2.3 percent while petroleum decreased 12.5 percent. However, receipts of natural gas increased 7.9 percent.

Table 2. U.S. Electric Power Industry Emissions 1997, 2006, and 2007

Source: Energy Information Administration, Electric Power Annual 2007, State Electricity Profiles 2007, United States.

• In 2007, carbon dioxide emissions by U.S. electric generators and combined heat and power facilities increased 2.3 percent to 2,517 million metric tons, consistent with the overall electric power generation growth rate.

• Sulfur dioxide and nitrogen oxides continued to decline. Since 1997, sulfur dioxide and nitrogen oxides emissions have declined by 32.9 and 43.8 percent, respectively. Emissions of these gases are capped by the Clean Air Act and other Federal and State legislation and regulations.

Figure 3. U.S. Electric Power Industry Emissions

Sources: Energy Information Administration, Electric Power Annual 2007.

• In 2007, carbon dioxide emissions continued to grow as more fossil fuels were consumed for electricity production.

• Sulfur dioxide emissions have steadily declined since 1998 except in 2005.

• The States that produced the largest amounts of carbon dioxide from electricity generation in 2007 were: Texas, Ohio, Pennsylvania, Florida and Indiana. These same States also emitted some of the largest amounts of sulfur dioxide, contributing 763 thousand metric tons of carbon dioxide and 3 thousand metric tons of sulfur dioxide emissions in 2007.

• Coal produces the largest amounts of carbon dioxide and accounted for more than 50 percent of total carbon dioxide emissions from electricity generation in the United States in 2007.

Figure 4. Percent of U.S. Electricity Sales by Sector with Average Retail Price, 2007

Source: Energy Information Administration, Electric Power Annual, 2007.

• The average retail price of electricity for all sectors increased by 2.6 percent from 8.90 cents per kilowatthour (kWh) in 2007 to 9.13 cents kWh in 2007.

• In 2007, electricity sales to the residential sector accounted for 37 percent of total electricity sales, while the commercial and industrial sectors accounted for 35 and 27 percent, respectively.

• Residential and commercial sales together accounted for over 72 percent of total retail sales in 2007.

• Retail sales by full service providers accounted for most of the electricity sales to ultimate customers. The total number of customers served in 2007 was 142 million, of which 124 million were from the residential sector.

• The total number of customers using “Green Pricing” and “Net Metering” programs has steadily increased since 2002. In 2007, the number of customers participating in green pricing programs totaled 835,651. Green pricing programs allow customers the opportunity to purchase electricity generated from renewable resources. Net metering programs allow customers with onsite generators to sell excess power back to the distributor for credit on their bill. The number of customers participating in net metering programs has increased dramatically since 2002, at which time there were a total of 4,472 customers compared with 48,820 customers in 2007.

• In 2007, the East North Central Census Division experienced the largest increase in average retail prices for all customers at 6.9 percent. The lowest regional price increase was in the Pacific Contiguous Census Division, where the average price to all customers increased 0.8 percent over 2006.

Figure 5. Average Retail Price of Electricity Sold by Sector, 1960-2007

Source: Energy Information Administration, Annual Energy Review 2007.

• In real terms, the period of declining prices that started in the early 1980’s ended after 2000. The year 2007 shows the continuation of these price increases.

• The average real price of electricity to the residential sector was 8.90 cents per kilowatthour (kWh); commercial sector, 8.06 cents/kWh; transportation sector, 8.11 cents/kWh; and 5.34 cents/kWh for the industrial sector.

• Most residential customers’ rates fluctuate on a seasonal basis, as overall demand increases and decreases due primarily to weather related conditions.

• Total revenue from retail sales of electricity to ultimate customers in 2007 was $344 billion.
  

• The major components of the price of electricity are the cost and availability of fuel used for power generation; the transmission necessary to deliver the power; the construction cost of plants; and expenses for operation and maintenance.