State legislatures and Congress have considered a variety of proposals that include specific provisions to support the continued development and use of renewable energy. Green pricing programs, already being implemented by regulated electric utilities, also may provide a means to increase consumer demand for electricity from renewable fuels. In its quantitative analysis of likely impacts on fuel supply industries, EIA prepared a range of scenario cases, based on different assumptions about key electricity and energy variables. Nuclear-powered generation capacity is projected to decline as a result of retirements and lack of new construction. Higher demand for natural gas for electricity generation in a competitive environment leads to higher gas prices than would be expected with no competition.
Competition also results in slightly lower coal prices.
Unless required by policies, the restructured electricity market will not stimulate renewable energy technologies. If policies require increased use of renewables, average electricity prices will increase slightly. The report described in this press release was prepared by the Energy Information Administration, the independent statistical and analytical agency within the U.S. Department of Energy. The information contained in the report and the press release should be attributed to the Energy Information Administration and should not be construed as advocating or reflecting any policy position of the Department of Energy or any other organization.