U.S. Power Demand Flatlined Years Ago, and It's Hurting Utilities
- Utility CEOs seek new ways to profit amid historic shift
- Renewables also cutting in on power generation monopoly
An empty coal train passes underneath power lines leading away from the Duke Energy Corp. Gibson Station power plant in Owensville, Indiana, U.S., on Thursday, July 23, 2015. Coal reclaimed its ranking as the top fuel for generating electricity at U.S. power plants in May, beating natural gas, which took the number one spot for the first time in April.
Photographer: Luke Sharett/BloombergElectric utilities have been doing everything they can to preserve their bottom line from conducting multi-billion mergers to snapping up more profitable natural gas businesses. Their trouble lies in one thing they can’t control: demand.
Power consumption in the U.S. has stalled for the last decade, breaking the link the industry has enjoyed with economic growth. For more than a century after Thomas Edison invented the light bulb in the 1870s, electricity demand rose steadily, boosting utility profits in the process.