EIA: Electricity Demand Seen Dropping 0.8% in '09

February 10, 2009

Dow Jones & Company,  Inc.

U.S. electricity demand is expected to drop 0.8% this year,
pushed lower by declining industrial demand, the U.S. government said Tuesday.
In its monthly Short-Term Energy Outlook, the Energy Information
Administration again lowered its outlook for electricity demand,
having forecast last month consumption would fall 0.5% for the year.
Driving the forecasted drop in power demand is an expected
decline of nearly 5% in industrial demand.
The EIA said power consumption, which was nearly flat last year,
will rebound 1.3% in 2010 as the economy improves. That's slightly
lower than last month's forecast of a 1.5% increase.
At the same time, the EIA kept its outlook for residential power
prices the same, forecasting a 2.3% increase this year and a 2.0%
increase next year. That follows an estimated 6.5% increase in prices
last year.
U.S. coal production after growing last year is forecast to
decline 4.4% in 2009, fueled by a decline in domestic demand, lower
exports and a rise in imports. Improved economic conditions in 2010
should result in production growing 2.5%.
The EIA in its January outlook projected production to decline 4%
this year before rebounding to grow 2.4% in 2010.
Coal exports are projected to decline 11.7% this year as global
demand slows and production returns to normal in countries that faced
disruptions.
Exports should rise next year by 12%, the EIA forecasted.
The EIA in last month's outlook projected a 12% decrease in
exports in 2009 and a 12% increase in 2010.
The EIA said coal consumption by power companies is forecasted to
fall 1.2% this year as electricity demand declines and generators look
to other sources, while climbing 1.8% in 2010. The EIA had forecast
last month a 0.7% decline in coal consumption by the power sector in
2009 and 1.9% increase in 2010.
-By Mark Peters, Dow Jones Newswires; 201-938-4604;
[email protected]

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