The U.S. electricity sector is regulated by various public institutions. In general, the federal and state governments establish policies through the Department of Energy. The National Energy Act of 1978 required utilities to provide customers with services to encourage energy conservation and renewable energy use. In 1992, the Energy Policy Act prompted the beginning of the deregulation of the electricity sector, which was established primarily to increase clean energy use and energy efficiency. The deregulation of the electricity market still varies by state. Due to its remote location, Hawaii has the highest electricity retail prices, followed by Alaska. The average U.S. electricity retail price reached a peak of 10.6 U.S. cents per kilowatt hour in 2019.
In recent years, the proportion of renewables in the U.S. energy mix has increased. Nevertheless, fossil fuels - primarily natural gas and coal – are still predominant sources of electricity generation in the country. Since 2016, natural gas has become the largest source of energy for electricity, following the declining use of coal. However, it is expected that renewable capacity will continue to increase under pressure from the public concerned with climate change and improvements in renewable technologies and costs.