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EIA: US power use seen rising 1%, prices up 10% in 2006

13 September 2006 -- U.S. electricity demand is expected to be nearly 1 percent higher in 2006 than in 2005, according to government data released Tuesday.

Total U.S. demand for power is expected to rise from 3,820.1 billion kWh in 2005, to 3,856.3 billion kWh in 2006, the U.S. Energy Information Administration (EIA) said in its Short-Term Energy Outlook report. Total power demand is expected to grow an additional 1.2 percent in 2007, to 3,903.4 billion kWh.

This past June and July were warmer than normal, boosting power demand for air-conditioners with cooling-degree days during the end-of-July heat wave 15 percent above normal, the EIA reported. July 2005 was also warmer than normal, as were the two months that followed. For that reason, cooling-degree days for the third quarter of 2006 will likely be 6 percent lower than 2005, but almost 12 percent above normal, the EIA said.

U.S. coal production is seen growing nearly 2 percent in 2006 to about 1.1 billion short tons, then flattening in 2007, the EIA said. While coal prices are expected to continue rising, they will increase at a slower rate than in 2005 and the first half of 2006, the EIA said. Coal prices for electric generation are expected to climb from $1.54 per million British thermal units in 2005, to $1.67/MMBtu in 2007, the EIA forecast.




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