Energy and America's Economy
Since 1970, energy has played a critical role in America's economy. As the largest source of electricity in the U.S., electricity from coal plays a crucial role with energy and America's economy. And, electricity from coal must continue to play an important part in America's future energy and economy. The U.S. will face increasing demands for abundant and affordable sources of electricity, and electricity from coal can meet the energy needs of America's economy.

As our most vital commodity, energy is critical to the strength of America's economy. At the wholesale level, electricity is a commodity, and at $217 billion a year it is one of the largest energy commodities in America's economy. Market forces are powerfully oriented toward demanding low prices for commodities. The lower the prices, the greater the downward pressure on inflation, which is why changes in commodity prices are considered a key indicator of inflationary trends. When any commodity is projected to have stable and declining prices, economists predict low inflation within energy and America's economy. Since electricity is one of the biggest commodities bought and sold in our nation, low and declining electric rates will moderate inflationary pressure for years to come, thereby protecting the integrity of savings and investments.

There is a direct connection between energy and America's economy. Increasing electricity demand is a direct measure of the fast-growing use of electric-based technologies such as telecommunications devices and computer and internet-oriented equipment, which boost America's economy. The growing dependence on energy in America's economy is best illustrated by the continued close relationship between electricity usage and the general level of activity in America's economy. Each percentage increase in real GDP between 1970 and 2000 has, in general, resulted in just over a one percent rise in the demand for electricity.

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