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Competitive Cost
U.S. electricity prices give American businesses a competitive
advantage.
- The price
of electricity is one of the major determinants of the competitiveness
of businesses, and U.S. electricity prices are low compared
to other nations.
- U.S. prices
for electricity are dropping. Since 1980, U.S. electricity prices,
adjusted for inflation, have declined 19 percent.
| Source:
EIA, Annual Energy Review 2001, T.8.15 |
- Electricity
is less expensive in the U.S. because producers pay less for
fuel to generate electricity. One of the reasons they pay less
is because of abundant, inexpensive coal.
Price of Electricity Since 1970
(Real 1996 Dollars) |
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Source:
EIA, Annual Energy Review 2001, T.8.6
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Coal makes
low-cost electricity possible. Low-cost electricity is primarily
a factor of fuel prices, and coal is and will continue to be the
least expensive option for generating electricity.
- The price
of natural gas can be very volatile. Between 1999 and 2002,
natural gas prices have fluctuated dramatically. In contrast,
prices for coal used in power plants have remained stable.
| Source:
EIA, Electric Power Monthly, January 2002, T.9.10 |
- Coal is
still the dominant source of electricity today, supplying 51
percent of our electric power.
| Source:
EIA, Annual Energy Review 2001,
T.8.2 |
- The U.S.
has more than a 250-year supply of coal, which means that we
have an abundance of coal-based capacity to meet the new and
growing demand for electricity.
- The cost
of recovering coal reserves is estimated to remain very stable
for the foreseeable future.
Cost of Coal Compared to Other Fuel Sources
for Electric Generation |
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Source: EIA, Monthly Energy Review, May
2003, T.9.10
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