Surplus, Price to Aid Homes

Weak demand for electricity and abundant stockpiles of fuel are creating conditions that could benefit consumers in two important ways this summer: more reliable delivery of power and, in some places, cheaper prices.

In most parts of the U.S., electricity reserves are getting fatter even though few power plants are being built. Overall U.S. electricity demand is expected to be 1.8% less this summer than last summer, according to the North American Electric Reliability Corp., or NERC, which is responsible for grid operations.

Weak demand for electricity and abundant stockpiles of fuel are creating conditions that could benefit consumers in two important ways this summer: more reliable delivery of power and, in some places, cheaper prices.

In most parts of the U.S., electricity reserves are getting fatter even though few power plants are being built. Overall U.S. electricity demand is expected to be 1.8% less this summer than last summer, according to the North American Electric Reliability Corp., or NERC, which is responsible for grid operations.

Power demand in industrialized nations usually rises steadily with population growth. However, the sharp drop in the economy, which has shuttered some big power users such as auto plants, has led to an unusually large falloff in demand. Demand is usually highest in the summer, when air conditioners can strain the delivery system.

WSJ