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Chapter 6 focuses on the U.S. energy supply. Sections 6.1 and 6.2 contain data on electric utilities, including generation capacity, primary fuel consumption, transmission and distribution losses, and electricity prices. Section 6.3 addresses the production, consumption, and storage of natural gas and petroleum. Section 6.4 covers emissions from the utility sector. Section 6.5 provides data on how utilities spend public and system benefit funds. The main points from this chapter are summarized below:

Total primary energy consumption in the United States increased from 78.3 quads in 1980 to over 100 quads in 2008.
Electricity demand in the buildings sector has more than doubled since 1980, increasing from 4.4 quads of delivered energy to 9.3 quads in 2008.
The average capacity factor of nuclear plants increased from 66% in 1990 to 91% in 2008, while the average capacity factor for coal plants increased from 59% to 71%. However, in 2009, the capacity factor for coal generation fell to 64%.
From 2000 to 2009, the number of natural gas wells increased from about 276,000 to 496,000 nationwide, allowing 87% of U.S. gas consumption to be produced domestically in 2009.

Total primary energy consumption in the United States increased from 78.3 quads in 1980 to over 100 quads in 2008. (1.1.3) Much of this growth has been driven by a 78% increase in electricity demand, from 7.2 quads of delivered energy in 1980 to 12.7 quads in 2008. To meet this demand, primary fuel consumption by electric utilities has increased from 24.3 quads to 40.2 quads over the same period. The Energy Information Administration (EIA) projects energy consumption from electricity will grow at a reduced rate to 15.3 quads of delivered energy and 46.1 quads of primary energy by 2035. (6.1.1), (6.1.3)

In 2008, the buildings sector consumed 40% of total primary energy but 73% of electricity. Electricity demand in the buildings sector has more than doubled since 1980, increasing from 4.4 quads of delivered energy to 9.3 quads in 2008. In comparison, buildings consumed 8.2 quads of natural gas, 1.8 quads of petroleum, and less than 1 quad of coal and renewable sources on site. Electricity accounted for 66% ($294 billion) of energy expenditures in the buildings sector in 2008. (6.1.1), (6.1.3)

Utilities rely on a variety of input fuels to generate electricity, including coal, nuclear, natural gas, petroleum, and renewable sources such as solar, wind, and hydro. Coal has accounted for at least half of electricity generation since 1980, reaching a high of 56% in the late 1980s. Nuclear generation also grew from 2.7 quads in 1980 to 6.1 quads, or 20% of total generation, in 1990. The use of natural gas and petroleum is very responsive to price, and use increases when prices become more competitive. As an overall trend, their shares of total generation decreased between 1980 and 1990, from 16% to 11% for natural gas and from 11% to 4% for petroleum. (6.1.2), (6.1.3)

Between 1990 and 2008, petroleum continued to fall as a share of total generation, while generation from natural gas doubled to 6.8 quads. The amount of electricity generated by nuclear power plants remained between 19% and 21% of total generation. Coal decreased as a share of total generation over that period, yet absolute generation from coal increased by 26% to 20.5 quads. EIA expects renewable sources to increase their share from 10% in 2008 to 14% in 2035, mostly as a result of increased wind capacity. This growth in generation share will mostly displace coal, which EIA expects to fall from 51% to 47% of total electricity generation. (6.1.2), (6.1.3)