"An unexpected drop in U.S. electricity consumption has utility companies worried that the trend isn't a byproduct of the economic downturn, and could reflect a permanent shift in consumption that will require sweeping change in their industry." ~Rebecca Smith, Wall Street Journal

Decline in Electricity Use "Delivers Jolt to Utilities"

Growth in electricity demand is declining, and the Wall Street Journal isn't the only one to notice. Our old friend PJM recently acknowledged electricity demand this summer was well below what it expected. And the latest forecasts out of the Department of Energy show electricity usage dropping further, and actually going negative, next year.

When you add in the conservation and efficiency programs being pushed by the Fed and the states, tales of explosive demand for electricity could be a thing of the past.

Doing the Math: 1% Annual Reduction = Huge Results

Utilities have insisted it would be "irresponsible" to assume less than 1.6% growth in demand every year. But what if instead, we all work together to achieve a 1% reduction in demand every year? Pennsylvania's Governor recently ordered the state's utilities to achieve a 1% reduction, or face penalties.

By our rough calculation, if the rest of the PJM region agreed to save 1% per year for the next ten years, we would use 33,000 fewer megawatts than currently projected. That's roughly 55 coal plants that could no longer be justified (and more than a few transmission lines).

DOE's Energy Information Administration November 2008 forecast shows electrity demand going negative in 2009.