Electricity Demand Rises, Along with Fuel Prices

The Energy Information Administration reported that electric generation rose in March compared to the same time period last year. According to the EIA, this was the fourth consecutive month that generation output rose year over year. At the same time the Federal Reserve, reported that industrial production was 4.0 percent higher than it had been in March 2009, the third consecutive month that industrial production was higher than it had been in the previous year. Since temperatures were more moderate compared to last year and temperature related energy usage actually decreased, this would indicate that higher industrial demand for electricity caused the increase in generator output.

Meanwhile, the EIA also reported that the average price paid for fossil fuels used to generate electricity rose year over year by 6.1%.

Source: U.S. Energy Information Administration (June 2010).

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