Demand for Electricity Grows in 2002

In 2001, electricity demand actually declined 0.6 percent, primarily reflecting a weakened economy and mild weather. For the two-year period ending December 31, 2002, total aggregate demand grew at an average annual rate of 1.7 percent, EEI said.

According to EEI's Weekly Electric Output Report, the net available amount of electricity delivered in 2002 was 3,776,797 gigawatt hours (GWh), compared with 3,627,736 GWh in 2001. A gigawatt hour equals 1,000 megawatt hours of electricity delivered.

A substantial increase in cooling and heating degree days partly explains the surging demand in 2002. For example, torrid temperatures led to a new all-time record for weekly demand set last year for the week ending August 3, in which 90,640 gigawatt hours were delivered nationwide.

A rebounding economy also spurred demand for electricity, with the annually adjusted rate of real Gross Domestic Product growing by 5 percent in the first quarter of 2002, and by 4 percent in the third quarter. Fourth- quarter data are not available, but recently released economic reports appear to be trending upward, EEI said.

Edison Electric Institute (EEI) is the association of United States shareholder-owned electric companies and industry affiliates and associates worldwide. Its domestic members generate approximately three-quarters of all the electricity generated by electric utilities in the country and serve about 70 percent of all ultimate customers in the nation.