Electricity sector of the United states - wikipedia Electricity sector of the United states Net electricity generation by energy source in 2016 Natural gas ( 33.8 % ) Coal ( 30.4 % ) Nuclear ( 19.7 % ) Hydro ( 6.5 % ) Wind ( 5.5 % ) Biomass ( 1.5 % ) Other ( 2.6 % ) Electrical generation by sources 1950 - 2016 The electricity sector of the United States includes a large array of stakeholders that provide services through electricity generation, transmission, distribution and marketing for industrial, commercial, public and residential customers. It also includes many public institutions that regulate the sector. In 1996, there were 3,195 electric utilities in the United States, of which fewer than 1,000 were engaged in power generation. This leaves a large number of mostly smaller utilities engaged only in power distribution. There were also 65 power marketers. Of all utilities, 2,020 were publicly owned ( including 10 Federal utilities ), 932 were rural electric cooperatives, and 243 were investor - owned utilities. The electricity transmission network is controlled by Independent System Operators or Regional Transmission Organizations, which are not - for - profit organizations that are obliged to provide indiscriminate access to various suppliers in order to promote competition. The four above - mentioned market segments of the U.S. electricity sector are regulated by different public institutions with some functional overlaps : The federal government sets general policies through the Department of Energy, environmental policy through the Environmental Protection Agency and consumer protection policy through the Federal Trade Commission. The safety of nuclear power plants is overseen by the Nuclear Regulatory Commission. Economic regulation of the distribution segment is a state responsibility, usually carried out through Public Utilities Commissions ; the inter-state transmission segment is regulated by the federal government through the Federal Energy Regulatory Commission. Principal sources of US electricity in 2014 were : coal ( 39 % ), natural gas ( 27 % ), nuclear ( 19 % ), Hydro ( 6 % ), and other renewables ( 7 % ). Over the decade 2004 -- 2014, the largest increases in electrical generation came from natural gas ( 2014 generation was 412 billion kWh greater than 2004 ), wind ( increase of 168 billion kWh ) and solar ( increased 18 billion kWh ). Over the same decade, annual generation from coal decreased 393 billion kWh, and from petroleum decreased 90 billion kWh. In 2008 the average electricity tariff in the U.S. was 9.82 Cents / kilowatt - hour ( kWh ). In 2006 - 07 electricity tariffs in the U.S. were higher than in Australia, Canada, France, Sweden and Finland, but lower than in Germany, Italy, Spain, and the UK. Residential tariffs vary significantly between states from 6.7 Cents / kWh in West Virginia to 24.1 Cents / kWh in Hawaii. The average residential bill in 2007 was US $100 / month. Most investments in the U.S. electricity sector are financed by private companies through debt and equity. However, some investments are indirectly financed by taxpayers through various subsidies ranging from tax incentives to subsidies for research and development, feed - in tariffs for renewable energy and support to low - income households to pay their electric bills. Contents 1 Electricity consumption 2 Electricity generation 2.1 Coal and Gas 2.2 Nuclear power 2.3 Renewable energy 3 Energy efficiency and conservation 4 Responsibilities in the electricity sector 4.1 Policy and regulation 4.2 Deregulation and competition 4.3 Service provision 4.3. 1 Generation 4.3. 2 Transmission 4.3. 3 Distribution 5 Economic and financial aspects 5.1 Tariffs and affordability 5.2 Revenues 5.3 Investment 5.4 Financing 5.5 Subsidies and tax incentives 6 See also 7 References 8 External links Electricity consumption US Electric Energy Consumption by User Community 2006 - 2016 2016 Electric Energy Consumption Profile Electric Customers 2016 Residential Electric costs by State 2016 Residential Average cost per kWh 2006 - 2016 Electricity consumption data in this section is based upon data mined from US DOE Energy Information Administration / Electric Power Annual 2016 files In 2016 the total US consumption of electricity was 4,137.1 terawatt - hours ( TWh ). Consumption was essentially flat from 2015, with a 6 TWh or 0.15 % drop. This is broken down as : Residential customers ( 131.07 million ) directly consumed 1,411.1 TWh, or 34.11 % of the total. This was up 7 TWh from 2015. An average residential customer used 897.2 kWh / month and with the average US residential cost of $0.1255 / kWh the average monthly electrical bill would be $112.59, down slightly from 2015. Commercial customers ( 18.148 million ) directly consumed 1,367.2 TWh or 33.05 % of the total. This was just a little more ( 6.44 TWh ) than in 2015. An average commercial customer used 6,278 kWh / month and with the average US commercial electric cost of $0.1043 / kWh the average monthly electrical bill would be $654.78, down slightly from 2015. Industrial customers ( about 838,100 ) directly consumed 976.7 TWh or 23.61 % of the total. This was a little less than in 2015 ( - 1.0 % ). Transportation customers ( 86 ) directly consumed 7.50 TWh or 0.18 % of the total. This was a little lower ( 0.14 TWh ) than in 2015. System loss throughout the total electrical grid infrastructure by direct use of the suppliers ( 139.8 TWh ) and for transmission and other system losses and for unaccounted for loads ( 234.8 TWh ) amounts to 374.6 TWh or 9.1 % of the total which is down by 0.2 % from 2015. Thus, one could say that the US electric distribution system is 90.94 % efficient and efficiency has improved over the last year. Electricity consumption per person ( per capita ) is based upon data mined from US DOE Energy Information Administration / Electric Power Annual 2016 files Population data is from Demographics of the United States. Per capita consumption in 2016 is 12,861 kWh. This is down 54 kWh from 2015 and down 6.3 % from a decade ago and down 8.0 % from its peak in 2007. The following table shows the yearly US per capita consumption by fuel source from 1999 to 2016. Yearly US Per capita Consumption ( kWh ) by Fuel Source 1999 - 2016 Year Population ( M ) Fossil Fuel Nuclear Renewable Misc Total Coal Oil Gas sub total Hydro Geo Thermal Solar Wind Wood Bio other sub Total 2016 323.128 3,835 75 4,305 8,215 2,493 829 49 170 702 127 68 1,886 209 12,861 2015 320.897 4,215 88 4,196 8,499 2,484 776 50 78 594 131 68 1,696 236 12,915 2014 318.857 4,961 95 3,571 8,626 2,500 813 50 55 570 133 68 1,689 190 13,005 2013 316.129 5,001 86 3,599 8,686 2,496 850 50 29 531 127 66 1,651 176 13,010 2012 313.874 4,824 74 3,944 8,841 2,451 880 50 14 449 120 63 1,576 179 13,047 2011 313.85 5,523 96 3,267 8,886 2,518 1,018 49 6 383 119 61 1,636 147 13,187 309.33 5,972 120 3,230 9,321 2,609 841 49 3.9 306 120 61 1,382 108 13,419 2009 307.01 5,719 127 3,034 8,881 2,602 891 49 2.9 241 117 60 1,361 135 12,978 2008 304.38 6,524 152 2,939 9,616 2,649 837 49 2.8 182 123 58 1,252 126 13,642 2007 301.58 6,686 218 3,018 9,922 2,674 821 49 2.0 114 129 55 1,170 121 13,887 2006 298.59 6,666 215 2,782 9,663 2,636 969 49 1.7 89 130 54 1,292 83 13,675 2005 295.75 6,806 413 2,618 9,838 2,644 914 50 1.9 60 131 52 1,209 105 13,796 293.05 6,751 413 2,475 9,639 2,691 916 51 2.0 48 130 53 1,199 58 13,588 2003 290.33 6,798 411 2,292 9,502 2,631 950 50 1.8 39 129 54 1,224 41 13,397 2002 287.80 6,717 329 2,441 9,486 2,710 918 50 1.9 36 134 52 1,193 90 13,479 285.08 6,679 438 2,274 9,390 2,697 761 48 1.9 24 123 51 1,009 88 13,185 2000 282.17 6,968 394 2,179 9,542 2,672 977 50 1.7 20 133 82 1,263 117 13,594 1999 279.04 6,741 423 2,045 9,209 2,610 1,145 53 1.8 16 133 81 1,430 96 13,345 Gas includes Natural Gas and Other Gases. Solar includes Photovoltaics and Thermal and includes small scale solar. Misc includes Misc generation, Pumped storage, and Net imports. Bio Other includes Waste, Landfill Gas, and Other. Hydro excludes pumped storage ( not an energy source, used by all sources, other than hydro ). Total includes Net imports and calculated small scale solar Electricity generation Profile of Electric Energy by Fuel Source 2006 - 2016 US Electric Energy Renewables 2006 - 2016 In 2016 the total installed electricity generation summer capacity : in the United States was 1,074.3 Gigawatts ( GW ), up 10.2 Gigawatts from 2015. The main energy sources for electricity generation include : Thermal / Fossil 750.18 GW down 8.27 GW from 2015 Nuclear 99.6 GW up 0.9 GW from 2015 Hydropower 79.9 GW up 0.2 GW from 2015 Wind 81.3 GW up 8.7 GW from 2015 Actual USA electricity generation in 2016 was 4,076.8 Terawatt hours ( TWh ) and was down 0.8 TWh from 2015. The USA also imported 69.60 Terawatt hours and exported 9.33 Terawatt hours : making a total of 4137.1 Terawatt hours for consumption, down 7.2 TWh from 2015. Electricity generation was primarily from the following sources : Thermal / Fossil 2,654.5 TWh down 72.5 TWh from 2015 Nuclear 805.7 TWh up 8.7 TWh from 2015 Hydropower 267.8 TWh up 18.8 TWh from 2015 Wind 227.0 TWh up 36.3 TWh from 2015 Other renewables 114.6 TWh ( including wood, landfill gas, geothermal energy, and solar ) up 10.1 TWh from 2015 The share of coal and nuclear in power generation is much higher than their share in installed capacity, because coal and nuclear plants provide base load and thus are running longer hours than natural gas and petroleum plants which typically provide peak load, while wind turbines and solar plants produce electricity when they can and natural gas fills in as required to compensate. Yearly electric energy generation by fuel source ( TWh ) Year Fossil Fuel Nuclear Renewable Misc Total Coal Oil Gas sub total Hydro Geo Thermal Solar Wind Wood Bio other sub Total 2017 1,207.90 21.09 1,287.02 2,516.02 804.95 300.05 15.98 52.96 254.25 43.28 20.77 687.29 6.55 + 4,014.80 + Proportion 2017 30.09 % 0.53 % 32.06 % 62.67 % 20.05 % 7.47 % 0.40 % 1.32 % 6.33 % 1.08 % 0.52 % 17.12 % 0.16 % 100.0 % 2016 1,239.15 24.20 1,391.11 2,654.47 805.69 267.81 15.83 36.05 226.99 40.95 21.81 609.45 67.49 4,137.10 Proportion 2016 29.95 % 0.59 % 33.63 % 64.16 % 19.47 % 6.47 % 0.38 % 0.87 % 5.49 % 0.99 % 0.53 % 14.73 % 1.63 % 100.0 % 2015 1,352.40 28.25 1,346.60 2,727.25 797.18 249.08 15.92 24.89 190.72 41.93 21.70 544.24 75.61 4,144.27 Proportion 2015 32.63 % 0.68 % 32.49 % 65.81 % 19.24 % 6.01 % 0.38 % 0.60 % 4.6 % 01.01 % 0.52 % 13.13 % 1.82 % 100.0 % 2014 1,581.71 30.23 1,138.63 2,750.57 797.17 259.37 15.88 17.69 181.655 42.34 21.65 538.58 60.50 4,146.2 2013 1,581.12 27.16 1,137.69 2,745.97 789.02 268.57 15.78 9.04 167.84 40 20.83 522.07 55.64 4,112.7 2012 1,514.04 23.19 1,237.79 2,775.02 769.33 276.24 15.56 4.33 140.82 37.8 19.82 494.57 56.1 4095 2011 1,733.4 30.2 1,025.3 2,788.9 790.2 319.4 15.3 1.82 120.2 37.4 19.2 513.32 46 4138.4 1,847.3 37.1 999.0 2,883.4 807.0 260.2 15.2 1.21 94.7 37.2 18.9 427.4 33.3 4,151.0 Proportion 2010 44.5 % 0.9 % 24.1 % 69.5 % 19.4 % 6.3 % 0.37 % 0.029 % 2.3 % 0.9 % 0.5 % 10.3 % 0.8 % 100.0 % 2009 1,755.9 38.9 931.6 2,726.5 798.9 273.4 15.0 0.89 73.9 36.1 18.4 417.7 41.4 3,984.4 2008 1,985.8 46.2 894.7 2,926.7 806.2 254.8 14.8 0.86 55.4 37.3 17.7 380.9 38.3 4,152.2 2007 2,016.5 65.7 910.0 2,992.2 806.4 247.5 14.6 0.61 34.5 39.0 16.5 352.7 36.6 4,188.0 2000 1,966 111 615 2,692 754 260 14 0.49 5.6 37.6 23 318.7 38.6 3,836 Proportion 2000 51.3 % 2.9 % 16.0 % 70.2 % 19.7 % 7.2 % 0.37 % 0.013 % 0.15 % 1.0 % 0.6 % 9.3 % 0.9 % 100.0 % 1999 1,881 118 571 2,570 728 319.5 14.8 0.50 4.5 37 22.6 392.8 55 3,723.8 Gas includes Natural Gas and Other Gases. Solar includes Photovoltaics and Thermal. Misc includes Misc generation, Pumped storage, and Net imports. Bio Other includes Waste, Landfill Gas, and Other. Hydro excludes pumped storage ( not an energy source, used by all sources, other than hydro ). Total includes Net imports. 2017 data is from Electric Power Monthly and does not include import - export data. The following table summarize the electrical energy generated by fuel sources for the USA. Data was mined from Electric Power Annual 2016ref > ( 7 ) retrieved 2018 - 4 - 22 < / ref > ). Profile data is from Electric Power Monthly and is for 2016 < / ref > ( 8 ) retrieved 2017 - 4 - 22 < / ref > ). 2016 Profile of US Total Electric Energy Generation 2016 Profile of US Electric Energy produced from coal 2016 Profile of US Electric Energy produced from natural gas 2016 Profile of US Electric Energy produced from nuclear power 2016 Profile of US Electric Energy produced by petroleum and other sources 2016 Profile of US Electric Energy produced by hydropower Electrical Production in the United States for 2016 Power Source Generators Summer Capacity ( GW ) % of total Capacity Capacity factor Annual Energy ( billion kWh ) % of Total US Coal 844 266.62 24.82 0.531 1,239.15 29.95 Nat Gas+ 5,929 449.28 41.82 0.353 1391.11 33.63 Nuclear 99 99.56 9.27 0.924 805.7 19.47 Hydro 4,050 79.91 7.44 0.383 267.81 6.47 Other Renewables 5,955 119.78 11.15 0.326 341.63 8.26 Petroleum 3,541 34.38 3.20 0.080 24.2 0.58 Other 153 2.02 0.19 0.786 13.91 0.34 Storage 153 22.78 2.12 - 0.034 - 6.69 - 0.16 Net Imports 60.28 1.46 Total 20,724 1074.33 100 0.440 4,137.1 100 Coal and gas See also : Coal power in the United States Fossil fuels -- mainly coal and natural gas -- remain the backbone of electricity generation in the U.S., accounting for 68 % of installed generation capacity in 2010. In 2007 the Department of Energy estimated the planned additional capacity for 2008 - 12 at 92 GW, most of which to be fueled by natural gas ( 48 GW ) and coal ( 19GW ). Nuclear power See also : Nuclear power in the United States As of 2007 in the United States, there are 104 commercial nuclear reactors in the US, generating approximately 20 % of the nation 's total electric energy consumption. For many years, no new nuclear plants have been built in the US. However, since 2005 there has been a renewed interest in nuclear power in the US. This has been facilitated in part by the federal government with the Nuclear Power 2010 Program of 2002. and the Energy Policy Act. As of March 9, 2009, the U.S. Nuclear Regulatory Commission had received applications for permission to construct 26 new nuclear power reactors However, as of 2013 most of the new applications had been abandoned due to the low cost of electricity generated with natural gas which had become available at cheap prices due to the boom in hydraulic fracturing ; electricity produced using natural gas being 4 cents a kilowatt hour versus 10 cents, or more, for nuclear. Renewable energy See also : Renewable energy in the United States, Solar power in the United States, Wind power in the United States, List of reservoirs and dams in the United States, and Category : Hydroelectric power plants in the United States The following table summarize the electrical energy generated by renewable fuel sources for the US. Data was obtained from Electric Power Annual 2016. Electric Production by Renewables in 2016 Power Source Summer Capacity ( GW ) % of Renewable Capacity % of Total Capacity Capacity Factor Annual Energy ( billion kWh ) % of Renewable Energy % of US Generation Hydro 79.91 40.02 7.44 0.383 267.81 43.93 6.47 Wind 81.29 40.71 7.57 0.319 226.99 37.25 5.49 Biomass 14.02 7.02 1.30 0.511 62.76 10.3 1.52 Solar 21.95 10.99 2.04 0.187 36.05 5.92 0.87 GeoThermal 2.52 1.26 0.23 0.717 15.83 2.6 0.38 Total 199.69 100.00 18.59 0.348 609.44 100.00 14.73 Note : Biomass includes wood and wood derived fuel, landfill gas, biogenic municipal solid waste and other waste biomass. 2016 Profile of US Electric Energy produced by wind power 2016 Profile of US Electric Energy produced by solar power 2016 Profile of US Electric Energy produced by biomass 2016 Profile of US Electric Energy produced by geothermal energy The development of renewable energy and energy efficiency marks `` a new era of energy exploration '' in the United States, according to President Barack Obama. In a joint address to the Congress on February 24, 2009, President Obama called for doubling renewable energy within the next three years. From the end of 2008 to the end of 2011 renewable energy increased by 35 % and from the end of 2008 till the end of 2014, 41.4 %. Renewable energy accounted for more than 14.9 percent of the domestically - produced electric energy used in the United States in 2016, up from 8.82 % in 2005. In the past ten years, wind production has increased by 900 % ( 10X ) and now provides over 5.49 % of US electric requirements. Over this same time period solar has increased by 4400 % ( 45X ) and now provides 0.87 % of US electric energy needs. According to a report by the Interior Department, U.S. wind power -- including off - shore turbines -- could more than meet U.S. electricity needs. The Department of Energy has said wind power could generate 20 % of US electricity by 2030. Several solar thermal power stations, including the new 64 MW Nevada Solar One, have also been built. The largest of these solar thermal power stations is the SEGS group of plants in the Mojave Desert with a total generating capacity of 354 MW, making the system the largest solar plant of any kind in the world. Energy efficiency and conservation The federal government promotes energy efficiency through the Energy Star program. The Alliance to Save Energy, an industry group, also promotes energy efficiency. Responsibilities in the electricity sector Policy and regulation See also : List of United States energy acts and Category : Public utilities commissions of the United States Policy for the electricity sector in the United States is set by the executive and legislative bodies of the federal government and state governments. Within the executive branch of the federal government the Department of Energy plays a key role. In addition, the Environmental Protection Agency is in charge of environmental regulation and the Federal Trade Commission is in charge of consumer protection and the prevention of anti-competitive practices. Key federal legislation related to the electricity sector includes : the Federal Power Act of 1935 that promoted hydropower and increased the role of the federal government in the sector, the National Energy Act of 1978, including the Public Utility Regulatory Policies Act ( PURPA ), which required utilities to provide residential consumers with energy conservation audits and other services to encourage slower growth of electricity demand, and was intended to promote renewable energy with the result of promoting mainly co-generation ; the Energy Policy Act of 1992 which provided further incentives for energy efficiency and removed obstacles to wholesale competition ; and the Energy Independence and Security Act of 2007 which phased out incandescent light bulbs. Many state governments have been active in promoting renewable energy. For example, in 2007 25 states and the District of Columbia had established renewable portfolio standards ( RPS ). There is no federal policy on RPS. The Federal Energy Regulatory Commission is in charge of regulating interstate electricity sales, wholesale electric rates, and licensing hydropower plants. Rates for electricity distribution are regulated by state - level Public Utilities Commissions or Public Services Commissions. Deregulation and competition Deregulation of the electricity sector consists in the introduction of competition and the unbundling of vertically integrated utilities in separate entities in charge of electricity generation, electricity transmission, electricity distribution and commercialization. The deregulation of the electricity sector in the U.S. began with the Energy Policy Act of 1992 which removed obstacles for wholesale competition. In practice, however, regulation has been unevenly introduced between states. It began in earnest only from 1996 onwards when the Federal Energy Regulatory Commission issued orders that required utilities to provide transmission services `` on a reasonable and non-discriminatory basis ''. In some states, such as in California, private utilities were required to sell some of their power plants to prevent concentration of market power. As of April 2014, 16 U.S. states - Connecticut, Delaware, Illinois, Maine, Maryland, Massachusetts, Michigan, Montana, New Hampshire, New Jersey, New York, Ohio, Oregon, Pennsylvania, Rhode Island, and Texas - and the District of Columbia have deregulated their electricity markets in some capacity. Additionally, seven states - Arizona, Arkansas, California, Nevada, New Mexico, Virginia, and Wyoming - started electricity deregulation in some capacity but have since suspended deregulation. The deregulation of the Texas electricity market in 2002 is one of the better - known examples. The result has been that the different states with in United States have a wide spectrum of different levels of deregulation. Some states only allow large commercial customers to choose a different supplier, some allow all consumers to choose. Contrary to the largely similar methods of deregulation for natural gas, different states have taken very different approaches to electricity deregulation. Service provision Electric utilities in the U.S. can be both in charge of electricity generation and electricity distribution. The electricity transmission network is not owned by individual utilities, but by companies and organizations that are obliged to provide indiscriminate access to various suppliers in order to promote competition. In 1996, there were 3,195 electric utilities in the United States and 65 power marketers. Of these, 2,020 were publicly owned ( including 10 Federal utilities ), 932 were rural electric cooperatives, and 243 were investor - owned utilities. Fewer than 1,000 utilities are engaged in power generation. See also : List of United States electric companies Generation About 80 % of the electricity in the U.S. is generated by private ( `` investor - owned '' ) utilities. The remaining electricity is produced by the public sector. This includes federal agencies such as the Tennessee Valley Authority ( producing mainly nuclear and hydropower ), and Power Marketing Administrations of the Department of Energy, one of which is the Bonneville Power Administration ( in the Pacific Northwest ) ( hydropower ). It also includes municipal utilities and utility cooperatives. The largest private electric producers in the United States include : AES Corporation Southern Company, 42 GW American Electric Power, 38 GW Duke Energy, 36 GW Luminant, 18 GW Reliant Energy, 14 GW Pacific Gas and Electric Company Allegheny Energy Transmission There are two major alternating current ( AC ) power grids in North America, the Eastern Interconnection and the Western Interconnection. Besides this there are two minor power grids in the U.S., the Alaska Interconnection and the Texas Interconnection. The Eastern, Western and Texas Interconnections are tied together at various points with DC interconnects allowing electrical power to be transmitted throughout the contiguous U.S., Canada and parts of Mexico. The transmission grids are operated by transmission system operators ( TSOs ), not - for profit companies that are typically owned by the utilities in their respective service area, where they coordinate, control and monitor the operation of the electrical power system. TSOs are obliged to provide non-discriminatory transmission access to electricity generators and customers. TSOs can be of two types : Independent System Operators ( ISOs ) and Regional Transmission Organizations ( RTOs ). The former operates within a single state and the latter covers wider areas crossing state borders. In 2009 there were four RTOs in the U.S. : ISO New England ( ISO - NE, which is an RTO despite its name ) ; Midcontinent Independent System Operator ; PJM Interconnection in the Mid-Atlantic region ; and Southwest Power Pool ( SPP ) covering Oklahoma, Kansas and parts of Arkansas, Missouri, Texas and New Mexico. There are also three ISOs : California Independent System Operator ( California ISO ) ; New York Independent System Operator ( NYISO ) ; Electric Reliability Council of Texas ( ERCOT, an ISO ). The three major and two minor NERC Interconnections, and the nine NERC Regional Reliability Councils. RTOs are similar, but not identical to the nine Regional Reliability Councils associated in the North American Electric Reliability Corporation ( NERC ), a non-profit entity that is in charge of improving the reliability and security of the bulk power system in the U.S., Canada and the northern part of Baja California in Mexico. The members of the Regional Reliability Councils include private, public and cooperative utilities, power marketers and final customers. The Regional Reliability Councils are : Eastern Interconnection Florida Reliability Coordinating Council ( FRCC ) Midwest Reliability Organization ( MRO ) Northeast Power Coordinating Council ( NPCC ) ReliabilityFirst Corporation ( RFC ) SERC Reliability Corporation ( SERC ) Southwest Power Pool ( SPP ) Western Interconnection Western Electricity Coordinating Council ( WECC ) Texas Interconnection Electric Reliability Council of Texas ( ERCOT ) The FERC distinguishes between 10 power markets in the U.S., including the seven for which RTOs have been established, well as : Northwest Southwest ( covering Arizona, most of New Mexico and Colorado ) Southeast ISOs and RTOs were established in the 1990s when states and regions established wholesale competition for electricity. See also : Category : Electric power transmission systems in the United States Distribution About 75 % of electricity sales to final customers are undertaken by private utilities, with the remainder being sold by municipal utilities and cooperatives. See also : List of United States electric companies Economic and financial aspects Tariffs and affordability In 2008 the average electricity tariff in the U.S. was 9.82 cents / kWh, up from 6.9 cents / kWh in 1995. Residential tariffs were somewhat higher at 11.36 cents / kWh, while commercial tariffs stood at 10.28 cents / kWh and industrial tariffs at 7.01 cents / kWh. The cost of supplying high - voltage power to high - volume industrial customers is lower than the cost of providing low - voltage ( 110 V ) power to residential and commercial customers. In 2006 - 07 commercial electricity tariffs in the U.S. ( 9.28 cents / kWh ) were higher than in Australia ( 7.1 cents / kWh ), Canada ( 6.18 cents / kWh ) that relies mainly on hydropower or in France ( 8.54 cents / kWh ) that relies heavily on nuclear power, but lower than in Germany ( 13.16 cents / kWh ), Italy ( 15.74 cents / kWh ) or the UK ( 11.16 cents / kWh ) that all rely to a larger degree on fossil fuels, all compared at purchasing power parity. Residential tariffs vary significantly between states from 6.7 cents / kWh in West Virginia to 24.1 cents / kWh in Hawaii. An important factor that influences tariff levels is the mix of energy sources used in power generation. For example, access to cheap federal power from hydropower plants contributes to low electricity tariffs in some states. Average residential electricity consumption in the U.S. was 936 kWh / month per in 2007, and the average bill was US $100 / month. Average residential consumption varies considerably between states from 530 kWh / month in Maine to 1344 kWh / month in Tennessee. Factors that influence residential energy consumption are climate, tariffs and efforts to promote energy conservation. Revenues Total revenue from the sale of electricity in 2008 was US $344 bn, including US $148 bn from residential customers, US $129 bn from commercial customers and US $66 bn from industrial customers. Many large industries self - generate electricity and their electricity consumption thus is not included in these figures. Investment This section is empty. You can help by adding to it. ( January 2011 ) Financing Most investments in the U.S. electricity sector are financed by private companies through debt and equity. However, some investments are indirectly financed by taxpayers through various subsidies. Subsidies and tax incentives There is a large array of subsidies in the U.S. electricity sector ranging from various forms of tax incentives to subsidies for research and development, feed - in tariffs for renewable energy and support to low - income households to pay their electric bills. Some subsidies are available throughout the U.S., while others are only available in some states. Tax incentives include federal and state tax deductions and tax breaks. Tax incentives can be directed at consumers, such as for the purchase of energy - efficient appliances or for solar energy systems, small wind systems, geothermal heat pumps, and residential fuel cell and microturbine systems. Tax incentives can also be directed at electricity producers, in particular for renewable energy. The Low Income Home Energy Assistance Program ( LIHEAP ) received federal funding of $5.1 billion in Fiscal Year 2009. It is funded mainly by the federal government through the U.S. Department of Health and Human Services, Administration for Children and Families, and is administered by states and territories. While some of its funding is for fuel for heating, some is also used to cover electricity bills for both heating and cooling. In April, 2009, 11 U.S. state legislatures were considering adopting feed - in tariffs as a complement to their renewable electricity mandates. See also Energy in the United States Energy policy of the United States California electricity crisis ( 2001 ) Northeast Blackout of 2003 Energy Information Administration List of largest power stations in the United States References Jump up ^ `` EIA - Electricity Data ''. www.eia.gov. Retrieved 6 March 2017. ^ Jump up to : `` Electricity ''. 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Jump up ^ Department of Energy : Consumer Energy Tax Incentives Jump up ^ Department of Health and Human Services : LIHEAP Clearinghouse Jump up ^ Transatlantic Climate Policy Group Archived 2010 - 03 - 11 at the Wayback Machine. : Feed - in Tariffs in America : Driving the Economy with Renewable Energy Policy that Works Archived 2011 - 07 - 18 at the Wayback Machine., accessed on April 8, 2009 External links U.S. Department of Energy ( DoE ) Energy Information Administration Electricity sector in North America Sovereign states Antigua and Barbuda Bahamas Barbados Belize Canada Costa Rica Cuba Dominica Dominican Republic El Salvador Grenada Guatemala Haiti Honduras Jamaica Mexico Nicaragua Panama Saint Kitts and Nevis Saint Lucia Saint Vincent and the Grenadines Trinidad and Tobago United States Dependencies and other territories Anguilla Aruba Bermuda Bonaire British Virgin Islands Cayman Islands Curaçao Greenland Guadeloupe Martinique Montserrat Puerto Rico Saint Barthélemy Saint Martin Saint Pierre and Miquelon Saba Sint Eustatius Sint Maarten Turks and Caicos Islands United States Virgin Islands Retrieved from `` https://en.wikipedia.org/w/index.php?title=Electricity_sector_of_the_United_States&oldid=842824084 '' Categories : Electric power in the United States Hidden categories : Webarchive template wayback links All articles with dead external links Articles with dead external links from October 2017 All articles with unsourced statements Articles with unsourced statements from May 2018 All articles with specifically marked weasel - worded phrases Articles with specifically marked weasel - worded phrases from May 2018 Articles with unsourced statements from February 2012 Articles to be expanded from January 2011 All articles to be expanded Articles with empty sections from January 2011 All articles with empty sections Articles using small message boxes Talk Contents About Wikipedia Français Русский Edit links This page was last edited on 24 May 2018, at 22 : 38. 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Question: where does the united states get its electricity
Answer: coal (39%)