The nuclear power industry, which accounts for about 21 percent of total electricity generation, will face the possible early retirement of some nuclear power units as a result of restructuring. Competitive electricity prices may be too low to cover operating costs. The States will determine whether and how much of these costs are recovered. Nuclear power plant operators will be challenged to reduce all operating costs. Natural Gas .
Natural gas is the preferred source of energy for most new generating capacity.
Deregulation of electricity markets could lead to greater integration of the electricity and natural gas industries and the emergence of competitive energy markets. Restructuring of the electric power industry should have little impact on crude oil-derived fuels, as the industry currently accounts for only 2 percent of the Nation's petroleum consumption. Electricity deregulation may, however, provide oil companies with opportunities to expand into a related business, using the experience they have gained in electricity production overseas. Because electricity generated from renewable fuels, other than hydropower, generally is more expensive than conventionally generated electricity, competition in deregulated electricity market could result in a reduced role for renewable energy facilities. State legislatures and Congress have considered a variety of proposals that include specific provisions to support the continued development and use of renewable energy.