EIA says US electricity demand to rise 2.6% in 2005, 2.4% in 2006

Washington (Platts)--10May2005

The US Energy Information on Tuesday said the US appetite for electricity
would increase by 2.6% in 2005, a slight reduction from its April prediction
of a 2.9% growth in demand. In its May Short-Term Energy Outlook, the agency,
however, raised its projection for electricity demand growth in 2006 to 2.4%
from last month's 2.2%. 

EIA estimates that power demand in 2004 grew by roughly 1.6%. The agency said
year-over-year demand growth in the third and fourth quarters of 2005 is
likely to be higher than 2004, when much of the country experienced
below-normal temperatures. 

Hydro-electric power availability, which fell in 2004, is projected to rebound
by 11% in 2005 in regions outside of the West Coast and Pacific Northwest,
where hydro levels are expected to be "well below-normal through mid-summer." 

Coal demand from the power sector is expected to rise 2.1% in 2005 and another
3.1% in 2006, prompted in large part by high oil and gas prices. US coal
production, EIA said, is projected to grow by 1.8% in 2005 and by another 1.7%
in 2006.

This story was originally published in Platts Electricity Alert
http://www.electricityalert.platts.com

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