Generating Capability

Preliminary estimates show that as of December 31, 2000, U.S. net summer generating capability was 811,625 megawatts, up from 787,902 megawatts on December 31, 1999. On a regional basis, the South Atlantic Census Division added 6,838 or 29 percent of the new capacity while the West South Central Census Division added 5,504 megawatts. The Pacific Contiguous Census Division added the least amount of new capacity with a net increase of only 97 megawatts. On a State-by-State basis, Texas and Georgia added the largest amount of new capacity with additions totaling 3,741 megawatts and 3,402 megawatts, respectively.

Over the past 2 years, shortages of electric power in some areas of the Nation have resulted in more attention being focused on capacity additions to the electric grid.

Figure 2. Share of Total Industry Capability by Industry Sector and Ownership, 1999

Table 3, which provides data on changes to capability at the State and Census Division level over the past decade, shows that State and regional additions to capability have varied greatly since 1990. A 20-percent increase in the South Atlantic Census Division was the largest percentage change among Census Divisions. This was followed by a 15-percent increase in the East South Central Census Division. Other double-digit increases in capability occurred in the Pacific Noncontiguous Census Division, West South Central Census Division, and the Mountain Census Division. The Middle Atlantic Census Division and the New England Census Division show increases of 6 percent and 5 percent, respectively. The smallest percentage increase in capability occurred in the Pacific Contiguous Census Division with a net change of 1 percent.

At the State level, the largest percent changed occurred in Rhode Island as it more than doubled its capability. Georgia, Mississippi, and Nevada each posted increases of 30 percent or more in capability since 1990. The largest volume change occurred in Texas as that State added 10,721 megawatts (15 percent) to its generating capability. Florida and Georgia followed with increases of 7,506 megawatts and 6,651 megawatts, respectively. States posting decreases in capability include Arkansas, California, Connecticut, Maine, New Hampshire, Oregon, and Vermont.⁽²⁾

While the electric generating capability of the Nation has increased by 10 percent since 1990, retail sales of electricity have grown by 26 percent.⁽³⁾ The result has been an increase in use or higher dependence on existing generating facilities. This is evident from an increase in the Nation's plant capacity factor from 49 percent in 1990 to 55 percent in 2000.⁽⁴⁾ Contributing to this increase were nuclear facilities, which increased their capacity factor from 66 percent in 1990 to 88 percent in 2000.⁽⁵⁾ The higher utilization rate resulted in nuclear facilities generating 20 percent of the Nation's electricity from only 12 percent of total capability. Since nuclear plants are among the least expensive to operate, they are typically base-load plants that operate on a continuous basis at high levels of output. Coal-fired generating plants ranked second in utilization with a 71 percent capacity factor, up from 59 percent in 1990.⁽⁶⁾ While accounting for 39 percent of total capability, they generated 52 percent of the Nation's electricity. Hydroelectric facilities accounted for 12 percent of total capability but only 7 percent of total generation. A reduction in their utilization rate from 1999 resulted from unusually dry weather throughout much of the western half of the Nation.

Together, gas-fired and petroleum-fired facilities had the lowest capacity factor at 29 percent, primarily because many of these facilities were built for the purpose of meeting peak load requirements. Though accounting for 35 percent of total capacity, gas-fired and petroleum-fired facilities produced only 19 percent of total generation. Fuel prices commonly affect the status of gas-fired and petroleum-fired plants that are operated at other than peak load periods. During 2000, high gas and petroleum prices reduced the operating time for some of these plants. Ironically, recent major gains in gas turbine efficiency, coupled with the clean-burning nature of natural gas and low capital cost requirements, have resulted in most new capacity additions being either gas-fired and/or petroleum-fired facilities.

Figure 3. Share of U.S. Net Summer Capability by Energy Source, Year-End 2000

Figure 4. Capacity Factor by Energy Source, 2000

The sale of electric utility plants and their subsequent reclassification to unregulated status continued at a brisk pace during 2000. This resulted in end-of-year electric utility capability of 602,377 megawatts, down from 639,324 megawatts in 1999. Nonutility capability rose to 209,248 megawatts from 148,578 megawatts in 1999. Approximately 48,000 megawatts of utility capacity were either sold or transferred into competitive markets, down from approximately 51,000 megawatts sold or transferred in 1999. Most of the reclassifications occurred in Illinois, Maryland, New Jersey, and Pennsylvania. Notable sales/transfers included facilities owned by Atlantic City Electric Company, Baltimore Gas & Electric Company, Central Illinois Public Service Company, Delmarva Power & Light Company, Duquesne Light Company, Pennsylvania Power & Light Company, Potomac Electric Power Company, Power Authority of the State of New York, Public Service Electric & Gas Company of New Jersey, and West Penn Power Company.