According to the Energy Information Administration’s (EIA) August Short-Term Energy Outlook, U.S. electricity consumption will increase 2.5% in 2022 compared to 2021 due to economic growth and hot summer temperatures.[1] U.S. electric sales are expected to decrease 0.3% in 2023. The EIA forecast the U.S. average residential electricity price in 2022 will increase 6.1% compared to 2021, largely driven by rising natural gas prices. Residential electricity prices will average 14.6 cents/kWh in 2022 and 14.9 cents/kWh in 2023.
Average natural gas prices fell over June and July because of additional supply in the U.s. market after the shutdown of the Freeport LNG export terminal in June. However, prices increased at the end of July because of high demand from the electric power sector. The EIA projects that LNG exports will increase to 14% in 2022 compared to 2021. Natural gas consumption is also projected to rise by 3% from 2021 to 2022. Coal consumption is expected to decrease by 1% between 2021 and 2022 and 9% between 2022 and 2023. Renewable energy sources will make up 24% of total generation in 2023, compared to 20 percent in 2021.