Nonutility generators production rises 48% for 11 months of 2000

April 3, 2001
Electricity produced by utilities still dominates the US electric power industry. But reflecting the growing importance of nonutility generation in the US mix, the federal government reported electricity production from that segment of the industry soared 48% during the first 11 months of 2000 to 708 billion kw-hr, compared to the same 1999 period. Meanwhile, electricity produced by utilities declined 5.5% to 2,755 billion kw-hr over the same time period.


By the OGJ Online Staff

HOUSTON, Apr. 3�Electricity produced by utilities still dominates the US electric power industry.

But reflecting the growing importance of nonutility generation in the US mix, the federal government reported electricity production from that segment of the industry soared 48% during the first 11 months of 2000 to 708 billion kw-hr, compared to the same 1999 period. Meanwhile, electricity produced by utilities declined 5.5% to 2,755 billion kw-hr over the same time period.

Total US electricity demand rose 2% to 3,463 billion kw-hr in the first 11 months of 2000, compared to the corresponding period in 1999, according the the US Energy Information Administration. Coal continued account for just over half the fuel used in the nation�s boilers, followed by nuclear, gas, hydro, oil, and renewables.

During the first 11 months of 2000, compared to 1999, residential rates rose to 8.26�/kw-hr from 8.18�/kw-hr, while commercial rates fell 1.3% to 7.20�/kw-hr, and industrial rates declined to 4.44�/kw-hr from 4.45�/kw-hr.

US electricity demand jumped a hefty 6% to 298 billion kw-hr in November 2000, compared to the year earlier period, the EIA reported. Total sales of electricity to ultimate consumers in the US were 264 billion kw-hr, a 4% increase over the amount reported in November 1999, the EIA said.

Residential sales climbed 8% to 84 billion kw-hr over the amount reported in November 1999. Retail sales of electricity in the commercial and industrial sectors were up 5% and 1%, respectively, over amounts reported in November 1999.

Nonutility power producers almost doubled generation to 72 billion kw-hr in November 2000 from 44.7 billion kw-hr in the comparable 1999 period, while electric utilities generated 226 billion kw-hr, down from 235.9 billion kw-hr in November 1999.

The sale and reclassification of utility plants to nonutility generation continued to effect reporting of fuel receipts to the Federal Energy Regulatory Commission. For example, the EIA said receipts of gas totaled 177 bcf in October 2000, down from 221 bcf reported in October 1999. The average cost of gas delivered to electric utilities in October 2000 was $5.30/MMbtu, the highest ever reported by electric utilities since data collection began in 1972. In October 1999, the average price was $2.82/MMbtu.

The EIA said as with with coal and petroleum, the sale and reclassification of electric plants is having a large affect on gas receipt data in New England, the mid-Atlantic, and Pacific contiguous census divisions, as well as at the national level.

Oil use totaled nine million barrels, up nearly one million barrels from the level reported in October 1999.

While the sale and reclassification of plants has reduced fuel oil receipts over the past year, the EIA said some increase in petroleum receipts may be due to utilities switching from natural gas to less expensive fuel oil as a replacement fuel.

The average delivered cost of fuel oil in October 2000 was $4.87/MMbtu, up from $3.21/MMbtu reported in October 1999.