Executive Summary

Generation: Net generation in the United States rose 1.9 percent from December 2008 to December 2009. This was the first month since July 2008 that net generation rose compared to the same calendar month in the prior year. The National Oceanic and Atmospheric Administration (NOAA) reported that none of the nine climate regions across the contiguous United States averaged warmer than normal temperatures in December 2009. As such, based on NOAA’s Residential Energy Demand Temperature Index (REDTI), the contiguous U.S. temperature-related energy demand was 4.9 percent above average for December and population-weighted heating degree days for the Nation were 6.1 percent above the average for the month of December and 5.2 percent above the value of December 2008. However, the Federal Reserve reported that industrial production was 2.0 percent lower than it had been in December 2008, the18th consecutive month that same-month industrial production was lower than it had been in the previous year.

The drop in nuclear generation was the largest absolute fuel-specific decline from December 2008 to December 2009 as it fell 2,490 thousand megawatthours or 3.4 percent. One of the units at the San Onofre generating station in California was off-line in December for a steam generator replacement and refueling. The generation drop at San Onofre accounted for 29.3 percent of the national nuclear decline. The December decline in coal-fired generation was the smallest of 2009. From January through November, the decline in coal-fired generation across the United States was 12.1 percent. In December it was only 0.3 percent lower. Generation from natural gas-fired plants was 11.2 percent higher than it was in December 2008 and was the largest absolute fuel-specific increase in December, rising 7,206 thousand megawatthours. Jumps in gas-fired generation in Texas, Florida, and Alabama accounted for 60.6 percent of the national increase.

Generation from conventional hydroelectric sources was up by 18.8 percent from December 2008 to December 2009, and accounted for the second-largest absolute fuel-specific increase, as generation from hydroelectric sources was up 3,931 thousand megawatthours. NOAA reports that December 2009 was the eleventh wettest December on record, and that the Southeast experienced its wettest December on record. Increased hydroelectric generation in Alabama, Tennessee, Arkansas, South Carolina, Georgia, and North Carolina accounted for 55.6 percent of the national increase.

Wind generation was down 5.2 percent. Petroleum liquid-fired generation was down 55.4 percent compared to a year ago, and its overall share of net generation continued to be quite small compared to coal, nuclear, natural gas-fired, and hydroelectric sources. Figure 1 shows net generation by month for the last 12 months.

Figure 1: Net Generation by Major Energy Source: Total (All Sectors), January 2009 through December 2009

Year-to-date, total net generation was down 4.1 percent from 2008 levels. Net generation attributable to coal-fired plants was down 11.1 percent. Nuclear generation was down 1.2 percent. Generation from petroleum liquids was down 19.2 percent, while natural gas-fired generation was up by 4.2 percent year-to-date. The year-to-date wind generation total was up 27.8 percent. Wind continues to be the largest source of non-hydroelectric renewable electricity.

Year-to-date, coal-fired plants contributed 44.7 percent of the Nation’s electric power. Nuclear plants contributed 20.2 percent, while 23.3 percent was generated at natural gas-fired plants. Of the 1.0 percent generated by petroleum-fired plants, petroleum liquids represented 0.7 percent, with the remainder from petroleum coke. Conventional hydroelectric power provided 6.9 percent of the total, while other renewables (biomass, geothermal, solar, and wind) and other miscellaneous energy sources generated the remaining 3.9 percent of electric power (Figure 2).

Figure 2: Net Generation Shares by Energy Source: Total (All Sectors), Year-to-Date through December, 2009

Consumption of Fuels: Consumption of coal for power generation in December 2009 was down 0.9 percent compared to December 2008. For the same time period, consumption of petroleum liquids was down 55.3 percent, while petroleum coke fell 15.0 percent. Consumption of natural gas rose 10.6 percent.

Fuel Stocks, Electric Power Sector, December 2009

Total electric power sector coal stocks increased between December 2008 and December 2009 by 28.4 million tons. Stocks of bituminous coal (including coal synfuel) increased by 38.7 percent, or 25.5 million tons between December 2008 and December 2009 (from 65.8 to 91.3 million tons). Subbituminous coal stocks grew by 2.4 million tons between December 2008 and December 2009 (from 91.2 to 93.6 million tons). December 2009 was the 16th consecutive month that coal stocks were higher than the same month in the prior year.

Electric power sector liquid petroleum stocks totaled 38.7 million barrels at the end of December 2009, a decrease of 5.2 percent (2.1 million barrels) from December 2008. December 2009 stocks were 1.4 percent (0.5 million barrels) higher than at the end of November 2009.

Fuel Receipts and Costs, All Sectors, December 2009

In December 2009, the price of coal, petroleum, and natural gas to electricity generators increased in varying degrees from November. Receipts of coal decreased slightly during the same period, while receipts of petroleum and natural gas increased.

The average price paid for coal in December 2009 was about the same price paid in November 2009 and December 2008. The December 2009 receipts of coal (75.1 million tons) decreased 2.5 percent when compared with November 2009 and 15.8 percent when compared with December 2008. The demand for coal receipts has been dampened by large stockpiles (203 million tons at the end of November 2009 – the highest level ever recorded) and by lower demand for coal-based generation due to the slow economy.

The average price paid for petroleum liquids increased from $12.56 per MMBtu in November 2009 to $12.91 in December. This was a 2.8-percent increase from November and a 54.6-percent increase from December 2008 when the cost of petroleum to electricity generators dropped to the lowest level since early 2007. Receipts of petroleum liquids in December 2009 were 3.8 million barrels, a significant increase (27.4 percent) from November 2009 and an even larger decrease (44.8 percent) from December 2008.

The average price paid for natural gas by electricity generators in December was $5.93 per MMBtu, a 23.3-percent increase from the November 2009 level of $4.81 and an 11.2-percent decrease from December 2008. Like petroleum prices, natural gas prices are returning to more normal levels. During 2008, the high prices of petroleum drove up the demand for natural gas, thereby driving up gas prices. Receipts of natural gas were 622.7 million Mcf, up 11.1 percent from November 2009 and up 8.9 percent from December 2008.

The overall price paid by electricity generating plants for fossil fuels was $3.38 per MMBtu in December 2009, a 15.0-percent increase from November 2009 and a 0.3-percent increase from December 2008. Year-to-date (January through December) 2009 prices compared to the same period last year were up 6.8 percent for coal, down 35.9 percent for petroleum liquids, and down 47.9 percent for natural gas. Year-to-date 2009 receipts compared to the same period last year were down 9.0 percent for coal and 17.9 percent for petroleum liquids. Natural gas year-to-date receipts were up by 2.8 percent.

Figure 3: Electric Power Industry Fuel Costs, January 2009 through December 2009

Sales, Revenue, and Average Retail Price, December 2009

The average retail price of electricity for December 2009 was 9.44 cents per kilowatthour (kWh), 0.2 percent higher than November 2009 when the average retail price of electricity was 9.42 cents per kWh, and 1.4 percent lower than December 2008, when the price was 9.57 cents per kWh. Retail sales between December 2008 and December 2009 decreased 0.1 percent led by a 1.8-percent decline in the industrial sector and a 1.3-percent decline in the residential sector. The average price of residential electricity for December 2009 increased 0.03 cents per kWh to 10.93 cents per kWh from December 2008 and was down from 11.33 cents per kWh in November 2009. At 10.93 cents per kWh, the average residential price of electricity increased by 0.3 percent from December 2008.

Sales: For December 2009, sales in the commercial sector increased by 2.3 percent, while sales in the residential and industrial sectors decreased by 1.3 and 1.8 percent, respectively, as compared to December 2008. For the month, total retail sales were 307.7 billion kWh, an increase of 41.9 billion kWh from November 2009, and a decrease of 0.1 percent or 0.5 billion kWh from December 2008. Year-to-date 2009 sales were 3,575.5 billion kWh, a 4.2-percent decrease from the same period in 2008.

Revenue: Total retail revenues in December 2009 were $29.0 billion, reflecting a decrease in revenue of 1.5 percent from December 2008, and a 16.0-percent increase from November 2009. For December 2009, residential sector retail revenues decreased 1.0 percent from December 2008, while the commercial and industrial sector retail revenues decreased by 1.1 percent and 4.0 percent, respectively. Year-to-date 2009 revenue decreased by 2.8 percent from the same period in 2008.

Average Retail Price: For the month, average residential retail prices decreased to 10.93 cents per kWh from 11.33 cents per kWh in November 2009, and they were 0.3 percent higher than December 2008 when the price was 10.90 cents per kWh. The December 2009 average commercial retail price was 9.73 cents per kWh, a 3.3-percent decrease from December 2008 and also down 0.9 percent from November 2009. The average industrial retail price for December 2009 declined to 6.52 cents per kWh, a 2.2-percent decrease from December 2008 but up from 6.44 cents per kWh in November 2009. Year-to-date 2009 average retail prices increased to 9.89 cents per kWh, a 1.5-percent increase over the same period for 2008 (Figure 4).

Figure 4: Average Retail Price of Electricity to Ultimate Customers by End-Use Sector, Year-to-Date through December 2009 and 2008

Contacts:

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