Electric Power Consumption

Electricity demand is driven by households, manufacturers and industrial producers, and any expansion in demand from these entities drives electricity consumption. Historically, electric power consumption trended upward along with an increase in the number of households, manufacturing capacity and industrial production. Economic growth during the early part of the decade resulted in a rise in consumption from 3,632 billion kWh in 2002 to 3,890 billion kWh in 2007.

The recession, however, reversed these trends as many households cut back on energy usage, businesses closed their doors and manufacturers idled capacity in response to diminished demand. In 2008 and 2009, electric power consumption dropped 0.6% and 3.7%, respectively. Consumption recovered 4.4% in 2010 as the economy gained steam and industrial producers and manufacturers increased their energy needs. However, the growth could have been more active, as slower economic growth and advances in energy-efficient appliances limited electric power consumption. Consumption fell 0.1% in 2011 and 1.3% in 2012. Additionally, rising fuel costs for power producers forced an increase in the prices consumers paid for electricity, incentivizing users to decrease power consumption. In response, producers lowered prices in 2012. Since that year, consumption mostly increased slowly to moderately, before decreasing slightly over 2015 and more significantly over 2017. Electricity consumption bounced back in 2018 before falling again in 2019 and 2020. In 2020 alone, electricity consumption declined 2.5%, marking the strongest decline since 2009, driven by stay-at-home orders and business closures. As business activity resumed, power consumption increased in 2021 and 2022. Meanwhile in 2023, electric power consumption slightly decreased from previous highs during 2023, only to return to growth during 2024 and 2025. Overall, electric power consumption has increased at an annualized rate of 1.6% over the five years to 2025.