Executive Summary

Generation: Data from the National Oceanic and Atmospheric Administration (NOAA) show that temperatures across the contiguous United States varied substantially in April 2008. While much of the U.S. was cooler than normal, the densely populated northeast was much warmer than normal. As such, the overall temperature-related residential energy demand for April was near average based on NOAA’s Residential Energy Demand Temperature Index. In a comparison of April 2008 to April 2007, however, heating degree days were 9.1 percent lower than they were last year. According to the Federal Reserve, industrial production was 0.2 percent higher than it had been in April 2007. The lower heating demand coupled with the small rise in production led to net generation that was 0.3 percent or 0.9.million MWh lower than April 2007.

Coal generation in April 2008 was 0.5 percent higher than it was in April 2007. Net generation attributable to nuclear sources was slightly lower than the year before. Natural gas-fired generation was 0.2 percent higher than its April 2007 level. Due to the increases in the price of oil, petroleum liquid-fired generation was 44.1 percent lower compared to a year ago, with its overall share of net generation still quite small compared to coal, nuclear, and natural gas-fired sources. Wind-powered generation was 40.5 percent higher than it was in April 2007. Even with this significant increase, the contribution of wind-powered generation to the national total was only 1.5 percent in April 2008.

Year-to-date, net generation was up 1.2 percent over 2007 levels, down from the 1.6 percent rise in March, due to the aforementioned weather and economic factors. Net generation attributable to coal-fired plants increased by 1.9 percent. Nuclear generation was down 1.2 percent. Generation from petroleum liquids was down 50.9 percent, while natural gas-fired generation was up 8.1 percent. Conventional hydroelectric generation was down 6.0 percent year-to-date.

Coal-fired plants contributed 49.9 percent of the Nation’s electric power, year-to-date. Nuclear plants contributed 19.6 percent, while 19.3 percent was generated at natural gas-fired plants. Of the 1.1 percent generated by petroleum-fired plants, petroleum liquids represented 0.7 percent, with the remainder from petroleum coke (Figure 1). Conventional hydroelectric power provided 6.7 percent of the total, while other renewables (primarily biomass, but also geothermal, solar, and wind) and other miscellaneous energy sources generated the remaining electric power. Figure 2 shows net generation by month for the last 12 months.

Figure 1: Net Generation Shares by Energy Source: Total (All Sectors), Year-to-Date through April, 2008

Consumption of Fuels: Consumption of coal for power generation in April 2008 was up by 1.2 percent compared to April 2007. For the same time period, consumption of natural gas decreased by 4.7 percent, while the consumption of petroleum liquids and petroleum coke decreased by 43.6 percent and 11.3 percent, respectively.

Year-to-date, consumption of coal and natural gas increased by 1.7 percent and 1.5 percent, respectively. The consumption of petroleum liquids and petroleum coke decreased by 51.5 percent and 13.0 percent, respectively.

Fuel Stocks, Electric Power Sector, April 2008

Total electric power sector coal stocks increased between April 2007 and April 2008 by 1.1 million tons. Stocks of bituminous coal (including coal synfuel) decreased by 11.8 million tons comparing April 2007 to April 2008 (from 75.4 to 63.6 million tons). Subbituminous coal stocks grew by 14.9 million tons between April 2007 and April 2008 (from 71.1 to 86.1 million tons).

As was the case at the end of February 2008, which reversed the trend of all 12 months of 2007 and January 2008, petroleum liquid stocks at the end of April 2008 increased from same-month levels of the prior year. Petroleum liquid stocks at the end of March 2008, however, were lower than they were at the end of March 2007. Electric power sector liquid petroleum stocks totaled 43.0 million barrels at the end of April 2008, 2.5 percent higher than the level at the end of April 2007, and 4.6 percent (1.9 million barrels) higher than at the end of March 2008.

Figure 2: Net Generation by Major Energy Source: Total (All Sectors), May 2007 through April 2008

Fuel Receipts and Costs, All Sectors, April 2008

April receipts of petroleum liquids were 5.3 million barrels, up 48.9 percent from March 2008. The falling trend in the price of petroleum to electricity generators that emerged last month continued. The average price paid for petroleum liquids was $14.95 per MMBtu in April 2008, a 1.0-percent decrease when compared with the $15.10 per MMBtu price in March 2008. However, the price is 73.4 percent higher than April 2007.

The average price paid for natural gas by electricity generators in April 2008 was $9.96 per MMBtu, a 7.2-percent increase from the March 2008 level of $9.29 per MMBtu. The April 2008 price was 32.1 percent higher than the April 2007 price of $7.54 per MMBtu. Receipts of natural gas were 536,097 thousand Mcf, up 0.7 percent from March 2008, and up 6.7 percent from April 2007. The average price of coal to electricity generators in April 2008 was $1.97 per MMBtu, up 1.5 percent from March 2008 and up 10.7 percent from the April 2007 price. Receipts of coal were down 0.5 percent when compared with March 2008 and down 3.0 percent from April 2007. The overall price for fossil fuels was $4.06 per MMBtu in April 2008, a 6.8-percent increase from March 2008, and 28.5 percent higher than in April 2007.

Year-to-date (January through April) 2008 prices compared to the same period last year were up 21.5 percent for gas, 81.1 percent for petroleum liquids, and 9.7 percent for coal. Year-to-date 2008 receipts compared to the same period last year are up 13.1 percent for natural gas, down 28.1 percent for petroleum liquids, and down 1.9 percent for coal.

Figure 3: Electric Power Industry Fuel Costs, May 2007 through April 2008

Sales, Revenue, and Average Retail Price, April 2008

The average retail price of electricity for April 2008 was 9.26 cents per kilowatthour (kWh), 1.9 percent higher than March 2008 when the average retail price of electricity was 9.09 cents per kWh and 4.6 percent higher than April 2007. An increase in electricity demand due to lower-than-normal temperatures led to retail sales for April 2008 being 1.9 percent higher than April 2007. The average price of residential electricity for April 2008 increased slightly to 10.97 cents per kWh, up from 10.52 cents per kWh in March 2008 and increased by 3.0 percent from April 2007.

Sales: For April 2008, the residential sector increased by 2.4 percent from April 2007. The commercial and industrial sectors increased by 2.0 and 1.2 respectively, over April 2007. For the month, total retail sales were 278.9 billion kWh, a decrease of 16.7 billion kWh from March 2008 and an increase of 5.2 billion kWh when compared to April 2007. Year-to-date 2008, sales increased to 1,208.4 billion kWh, a 2.5 percent increase over the same period for 2007.

Revenue: The total retail revenues in April 2008 were $25.8 billion reflecting an increase of 6.7 percent over April 2007 revenues. The data suggest that the revenue increase was related to higher fuel costs. Total retail revenues for April 2008 decreased approximately $1.0 billion from March 2008 reflecting the similar comparison of sales for that time frame. The retail revenues for the residential sector for April 2008 increased 5.4 percent over April 2007, while the commercial and industrial sectors showed increases of 6.3 and 9.8 percent, respectively. Year-to-date 2008, revenue increased to $109.6 billion, a 6.0 percent increase over the same period for 2007.

Average Retail Price: For the month, average residential retail prices increased 3.0 percent over April 2007 and 4.3 percent over March 2008. The average commercial and industrial retail prices for April 2008 increased 4.3 percent and 8.4 percent, respectively from the prior year. In April 2008, the average cost of electricity per unit increased to 9.26 cents per kWh from 9.09 cents per kWh in March 2008. Year-to-date 2008, the average residential retail price increased to 10.44 cents per kWh, or 2.8 percent, while the overall average retail price increased to 9.07 cents per kWh, a 3.4 percent increase over the same period for 2007. (Figure 4).

Figure 4: Average Retail Price of Electricity to Ultimate Customers by End-Use Sector, Year-to-Date through April 2008 and 2007

Contacts:

Coordinator -

Generation -

Consumption -

Fuel Stocks -

Fuel Receipts, Cost, and Quality -

Sales, Revenue, and Average Retail Price of Electricity -