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Electricity in the U.S. - Statistics & facts

The electricity market in the United States includes industry players that provide a wide range of services both privately and publicly owned. Generally, in the Southeast, the Southwest, and the Northwest, electric utilities tend to be responsible for the operation and maintaining of the electricity system, providing retail customers with power. Most of these utilities are vertically integrated, where they own the systems responsible for the generation, transmission, and distribution of electricity. The large majority of utilities are publicly owned, with about ten federal utilities. As of April 2020, NextEra Energy is the largest U.S. electric utility by market value.

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.

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Electricity in the U.S.

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