Power Biz 101
The Nation’s Economic Growth Is Closely Linked To Electricity.
The U.S. economy is highly dependent on affordable and reliable electricity. Today’s high-technology society demands electricity to power nearly all new products that come to market. Analysts use a term called "intensity" to relate electricity and energy use to the gross domestic product (GDP), the nation’s gauge of economic health. Electricity intensity in our economy (measured by electricity consumption per dollar of real GDP) shows a close relationship between electricity and the general level of economic activity.
Historically, electricity demand has been sensitive to changes in economic growth. Growth in electricity use has coincided with growth in the GDP since the end of World War II. The tie between electricity use and the economy is the product of many factors, including the development of advanced electric technologies, population changes, and the relatively stable price of electricity.
1985 represents the base year. Graph depicts increases or decreases from the base year.
Source: U.S. Department of Energy, Energy Information Administration (EIA).
