The following charts present the share of generating capacity produced by each of the major fuel sources. They clearly illustrate the increasing reliance on natural gas as the generating fuel of choice. This dependency on a single fuel exposes the power industry to vulnerabilities of supply disruptions and price volatility.

Natural gas, while clean burning and efficient, requires an extensive gathering, processing, storage and transportation infrastructure. Constraints or interruptions in the natural gas supply chain create sharp price spikes in fuel costs and the price of electricity generated by it.

"The gas industry has said a prospective shortfall in the pipeline capacity would limit its ability to meet a projected rise in demand. The existing infrastructure was not planned to meet the rate of gas consumption growth expected in the next decade, particularly demand driven by electric power generation."
(Oil & Gas Journal Online, Sept. 12, 2001)

Coal Gas/Oil Nuclear Hydro Other

1990

2000

2010

Based on data reported by NERC, October 2001.