Electricity is an essential part of modern life. In our homes we use it for lighting, running appliances and electronics, and often for heating and cooling. Most consumers don’t think much about their electricity until a power outage, or when they get a high utility bill.

Consumers Depend on Reliable Electricity

Fortunately in the United States, power outages are relatively infrequent and short in duration mainly because we have one of the most advanced, reliable, and well-maintained electricity generation, transmission, and distribution systems in the world.

Did You Know?

Electricity was first sold in the United States in 1879 by the California Electric Light Company in San Francisco, which produced and sold only enough electricity to power 21 electric lights (Brush arc light lamps).

We plug in an appliance or turn on a switch without giving it a second thought. To ensure that continuous flow of electricity is there to meet our needs, electric power producers operate several types of large generators.

Electricity Consumption Totaled Nearly 3,856 Billion Kilowatthours (kWh) in 2011

U.S. electricity use in 2011 was more than 13 times greater than electricity use in 1950.

Share of electricity use by major consuming sectors:

  • Residential — 37%
  • Commercial — 34%
  • Industrial — 26% (includes "direct use")
  • Transportation — Only a small percentage of electricity is used in the transportation sector, mostly for trains and plug-in electric cars

Direct use is electricity generated mainly by manufacturing that is used by the facilities.

Most Electricity in Homes Is Used for Appliances and Lighting

Most of the electricity used in the residential sector is for air conditioning, refrigerators, space and water heating, lighting, and powering appliances and equipment.

U.S. Electricity Use Is Expected To Grow Slowly

Electricity demand fluctuates in the short term in response to business cycles, weather conditions, and prices. Over the long term, electricity consumption increases. However, electricity demand growth has slowed progressively by decade since 1950, from 9% per year in the 1950s to less than 2.5% per year in the 1990s. Electricity demand grows by 0.8% per year through 2035.

International Electricity Use Will Grow Faster

Non-OECD nations consumed 47% of the world's total electricity supply in 2008, and their share of world consumption is poised to increase over the projection period extending to 2035. In 2035, non-OECD nations account for 60% of world electricity use, while the OECD share declines to 40%.