There is a large array of stakeholders that provide services through electricity generation, transmission, distribution and marketing for industrial, commercial, public and residential customers in the United States. It also includes many public institutions that regulate the sector. In 1996, there were 3,195 electric utilities in the United States, of which fewer than 1,000 were engaged in power generation. This leaves a large number of mostly smaller utilities engaged only in power distribution. There were also 65 power marketers. Of all utilities, 2,020 were publicly owned (including 10 Federal utilities), 932 were rural electric cooperatives, and 243 were investor-owned utilities. The electricity transmission network is controlled by Independent System Operators or Regional Transmission Organizations, which are not-for-profit organizations that are obliged to provide indiscriminate access to various suppliers to promote competition.
The four above-mentioned market segments of the U.S. electricity sector are regulated by different public institutions with some functional overlaps: The federal government sets general policies through the Department of Energy, environmental policy through the Environmental Protection Agency and consumer protection policy through the Federal Trade Commission. The safety of nuclear power plants is overseen by the Nuclear Regulatory Commission. Economic regulation of the distribution segment is a state responsibility, usually carried out through Public Utilities Commissions; the inter-state transmission segment is regulated by the federal government through the Federal Energy Regulatory Commission.
Principal sources of US electricity in 2019 were: natural gas (38%), coal (23%), nuclear (20%), other renewables (11%), and hydro (7%). Over the decade 2004–2014, the largest increases in electrical generation came from natural gas (2014 generation was 412TWh greater than 2004), wind (increase of 168TWh) and solar (increased 18TWh). Over the same decade, annual generation from coal decreased 393TWh, and from petroleum decreased 90TWh.
In 2008 the average electricity tariff in the U.S. was 9.82¢/kWh. In 2006–2007 electricity tariffs in the U.S. were higher than in Australia, Canada, France, Sweden and Finland, but lower than in Germany, Italy, Spain, and the UK. Residential tariffs vary significantly between states from 6.7¢/kWh in West Virginia to 24.1¢/kWh in Hawaii. The average residential bill in 2007 was US$100/month. Most investments in the U.S. electricity sector are financed by private companies through debt and equity. However, some investments are indirectly financed by taxpayers through various subsidies ranging from tax incentives to subsidies for research and development, feed-in tariffs for renewable energy and support to low-income households to pay their electric bills.
Electricity consumption
Electricity consumption data in this section is based upon data mined from US DOE Energy Information Administration/Electric Power Annual 2022 files In 2022 the total US consumption of electricity was 4,271.88 terawatt-hours (TWh). Consumption was up from 2021, by 122.87TWh or +2.96%. This is broken down as: Residential customers (139.894 million) directly consumed 1,509.23TWh, or 35.23% of the total. This was up 38.74TWh (+2.6%) from 2021. An average residential customer used 899kWh/month and with the average US residential cost of $0.1504/kWh the average monthly electrical bill would be $135.27, up $14.25 (+11.77% from 2021. Commercial customers (19.258 million) directly consumed 1,390.87TWh or 32.56% of the total. This was more (62.43TWh) than in 2021 with over 155 thousand new customers. An average commercial customer used 6,019kWh/month and with the average US commercial electric cost of $0.1241/kWh the average monthly electrical bill would be $746.96 up $96.76 (+14.9%) from 2021 . Industrial customers (1,049.983 thousand up 27.8 thousand from 2021) directly consumed 1020.486TWh or 23.89% of the total. This was a more (19.85TWh) than in 2021 (+2 %). Transportation customers (86) directly consumed 6.599TWh or 0.15% of the total. This was a little higher by 0.265 TWh(+4.1%) than in 2021TWh) . System loss throughout the total electrical grid infrastructure by direct use of the suppliers (139.726TWh) and for transmission and other system losses and for unaccounted for loads (204.989TWh) amounts to 344.719TWh or 8.07% of the total which is down by 0.2% from 2021. Thus, the US electric distribution system is 91.93% efficient and efficiency has improved slightly over the last year.