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Enron Mail |
any reaction to this?
slafontaine@globalp.com on 03/06/2001 01:16:41 PM To: jarnold@enron.com cc: Subject: eia power demand (Recasts, adds details) WASHINGTON, March 6 (Reuters) - U.S. electricity demand will grow by about 2.3 percent in 2001, down from 3.6 percent growth last year due to the nation's slowing economy, the U.S. Energy Information Administration said on Tuesday. Natural gas demand will also grow at about 2.3 percent this year, the EIA said in its monthly supply and demand report. Natural gas is the third most popular fuel used by U.S. electricity generating plants after nuclear and coal. U.S. electricity demand in the first quarter of 2001 was forecast at about 896 billion kilowatt hours (kwh), the EIA said. That is slightly higher than the 895.8 billion kwh forecast by the agency last month. For the entire winter heating season of October through March, electricity demand was forecast to rise by 4.6 percent from the previous year, the EIA said. The increase was driven by the residential and commercial sectors, which were forecst to be higher by 8 and 4 percent, respectively. More electricity plants were expected to switch from natural gas back to fuel oil as oil prices drift lower, the government report said. "This trend is expected to continue through the first quarter 2001," the EIA said. "Although the favorable price differential for oil relative to gas is expected to continue through the forecast period, by the second half of 2001, expected increases in gas-fired capacity are expected to keep gas demand for power generation growing." The monthly report also said that mild weather has eased natural gas prices in California, but the state still faces gas supply and deliverability bottlenecks affecting its electricity plants. California has been fighting all winter to maintain
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