Resource Use: March 2024

Supply and fuel consumption

In this section, we look at the resources used to produce electricity. Generating units are chosen to run primarily on their operating costs, of which fuel costs account for the lion's share. Therefore, we present below, electricity generation output by fuel type and generator type. Since the generator/fuel mix of utilities varies significantly by region, we also present generation output by region.

Generation output by region

Net electricity generation in the United States decreased 1.9% from the previous March. All regions of the country, except for the Northeast, experienced this year-over-year decrease in electricity generation. The Northeast was the outlier and saw a 6.6% increase in electricity generation from March 2023. This occurred because the Northeast experienced an abnormally warm March this year compared to the previous year. This led to an increase in the demand for residential cooling, which led to an increase in the need for electricity generation.

All areas of the country, except for the Northeast, saw electricity generation from coal decrease compared to the previous year. The change in electricity generation from natural gas was more mixed, with the Northeast, MidAtlantic, Florida, and Texas all seeing an increase in natural gas generation, while the Central, Southeast, and West all saw a decrease in electricity generation from natural gas.

Fossil fuel consumption by region

The chart above compares coal consumption in March 2023 and March 2024 by region and the second tab compares natural gas consumption by region over the same period. Changes in coal and natural gas consumption were similar to their respective changes in coal and natural gas generation.

The third tab presents the change in the relative share of fossil fuel consumption by fuel type on a percentage basis, calculated using equivalent energy content (Btu). This highlights changes in the relative market shares of coal, natural gas, and petroleum. All regions of the country, except for the Southeast, saw their share of natural gas increase at the expense of coal.

The fourth tab presents the change in coal and natural gas consumption on an energy content basis by region. The changes in total coal and natural gas consumption were similar to the changes seen in total coal and natural gas net generation in each region.

Fossil fuel prices

To gain some insight into the changing pattern of consumption of fossil fuels over the past year, we look at relative monthly average spot fuel prices. A common way to compare fuel prices is on an equivalent $/MMBtu basis as shown in the chart above. The average price of natural gas at Henry Hub decreased from the previous month, going from $1.76/MMBtu in February 2024 to $1.55/MMBtu in March 2024. The natural gas price for New York City (Transco Zone 6 NY) also decreased in price from the previous month, going from $1.77/MMBtu in February 2024 to $1.51/MMBtu in March 2024. The average spot price of Central Appalachian coal increased from the previous month, going from $3.14/MMBtu in February 2024 to $3.29/MMBtu in March 2024.

The New York Harbor residual oil price decreased slightly from the previous month, going from $12.94/MMBtu in February 2024 to $12.91/MMBtu in March 2024. As is the case in most months, oil was priced out of most electricity markets for baseload operations during the month.

A fuel price comparison based on equivalent energy content ($/MMBtu) does not reflect differences in energy conversion efficiency (heat rate) among different types of generators. Gas-fired combined-cycle units tend to be more efficient than coal-fired steam units. The second tab shows coal and natural gas prices on an equivalent energy content and efficiency basis. The Henry Hub natural gas price ($12.41/MWh) saw a decrease from the previous month ($14.11/MWh) and was well below the Central Appalachian coal price ($35.53/MWh) in March 2024. The price of natural gas at New York City ($12.07/MWh) also decreased from the previous month ($14.20/MWh) and was well above the Central Appalachian coal price ($35.53/MWh) during March 2024.

The conversion shown in this chart is done for illustrative purposes only. The competition between coal and natural gas to produce electricity is more complex. It involves delivered prices and emission costs, the terms of fuel supply contracts, and the workings of fuel markets.