Resource Use: February 2025

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 increased 5.7% compared to February 2024. This increase in electricity generation occurred because the country experienced record warm temperatures last February, while the country experienced average temperatures during this February. This led to an increase in electricity generation this February 2025 as the country had more demand for electricity to meet residential heating demand this February compared to February 2024. At the regional level, almost all parts of the country experienced this year-over-year increase in electricity generation. The Western region was the only part of the country that saw a decrease in electricity generation (down 3%) compared to the previous year.

Electricity generation from coal increased in all parts of the country, except for Florida, compared to February 2024. The change in electricity generation from natural gas was more mixed throughout the country, with the Northeast, Southeast, Florida, and Texas all seeing an increase in natural gas generation, while the MidAtlantic, Central, and Western regions all saw a decrease in electricity generation from natural gas compared to the previous February.

Fossil fuel consumption by region

The chart above compares coal consumption in February 2024 and February 2025 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. Most regions of the country saw their share of coal increase at the expense of natural gas. The Northeast also saw its share of other fossil fuels increase at the expense of natural gas. This is not uncommon in the Northeast during the winter months when demand for natural gas increases in an area of the country that has natural gas pipeline constraints. Other fossil fuels, namely petroleum liquids, are used to meet this additional demand for electricity during this time.

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 $4.62/MMBtu in January 2025 to $4.26/MMBtu in February 2025. The natural gas price for New York City (Transco Zone 6 NY) decreased significantly in price from the previous month, going from $19.26/MMBtu in January 2025 to $6.42/MMBtu in February 2025. The average spot price of Central Appalachian coal went up slightly from the previous month, going from $3.28/MMBtu in January 2025 to $3.30/MMBtu in February 2025.

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 ($34.13/MWh) saw a decrease from the previous month ($36.98/MWh) and was just below the Central Appalachian coal price ($35.60/MWh) in February 2025. The price of natural gas at New York City ($51.39/MWh) saw a significant decrease compared to the previous month ($154.29/MWh) but remained above the Central Appalachian coal price ($35.60/MWh).

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.