Key Issues

The United States relies on diverse sources for electricity. Together, coal and nuclear energy provide 60 percent of supply. Natural gas supplies 25 percent; hydropower,7.8 percent; oil, 1 percent; and renewable and other sources, 5 percent.

Diverse energy sources enable the United States to balance the cost of electricity production, availability and environmental impacts to our best advantage. Coal, natural gas and nuclear energy are the foundation of the nation’s electricity supply system. Coal produces 42.2 percent of U.S. electricity; natural gas, 24.8 percent; and nuclear, 19.2 percent. The rest comes from hydroelectric dams and renewable energy. Each source of electricity has unique advantages and disadvantages, and each has its place in a balanced electricity supply portfolio.

Natural gas-fired electricity generation has more than doubled since 1990 to 24.8 percent of all production. Natural gas fuels nearly all power plants built over the past 15 years. However, natural gas is subject to significant price fluctuations. The greater the country’s reliance on natural gas, the greater the likelihood that electricity prices will experience increased volatility in the future.

Energy supply vulnerabilities were self-evident in August and September 2005, when Hurricanes Katrina and Rita struck the energy-rich Gulf Coast, disrupting natural gas supplies across the nation.

The uranium fuel for U.S. nuclear plants is abundant and readily available from stable allies, such as Canada and Australia. The long-term stability of fuel cost, coupled with industry success over the past 15 years in reducing operating costs, makes America’s 104 reactors among the lowest-cost sources of electricity available.