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Investing In America’s Electric Future: The Time Is Now.
America’s electric companies are committed to providing reliable and affordable electricity to their customers. While efficiency improvements have had a major impact in meeting national electricity needs relative to new supply, the demand for electricity continues to increase. For example, in 2006, the nation’s electric output was the second highest yearly total ever recorded, falling just shy of the record set in 2005. The electric power industry set an all-time weekly electric output record in late July 2006, which was eclipsed only two weeks later.

Looking ahead, it is likely that more records for electricity use will be set. The population of the United States is anticipated to grow 23 percent between now and 2030, while the nation’s gross domestic product is projected to double in that time. Electricity use will increase by at least 40 percent over the same time period.

This sustained growth in electricity demand requires electric companies to invest in new power plants, as well as the transmission and distribution infrastructure used to deliver the power where it is needed. The electric power industry has already begun increasing its capital expenditures to keep pace with growing demand. Capital expenditures increased from $48.4 billion in 2005 to $60.3 billion in 2006, and are projected to reach $73.1 billion in 2007.

However, building for the future will be difficult. The electric power industry has identified five issues that must be addressed to ensure that its investments will keep pace with demand: expanding energy efficiency, addressing environmental concerns, sustaining effective tax policies, developing needed federal/state regulations, and educating the public about the need for major new investments and what these mean for them.

By investing in America’s electric future, the electric power industry will ensure that Americans continue to enjoy the reliable, affordable supply of electricity that we often take for granted.