Gas-Fired Generation

How it can factor into your electricity costs

According to a recent article published by the United States Energy Information Administration (EIA), as of 2016, natural gas generators make up the largest percentage of generation capacity in the United States. In fact, the cost-effective natural gas sources stand as a significant majority, at 42% of the total generation nationwide. This beats out sources such as nuclear, solar, petroleum, wind, and even coal. But what does this mean for consumers across the country?

Ultimately, the increase in gas-fired generation is due to declining prices for natural gas. This price decline has allowed gas-fired generators to run at a relatively inexpensive cost compared to coal-fired generators. The natural gas and electricity markets tend to be correlated and with the continual increase of gas generation in the fuel mix, we see this trend more than ever.

All of the lower 48 states (with the exception of Vermont) offer some form of electricity generated through natural gas. So, there is a high likelihood that a portion of your electricity prices are being driven by natural gas market movement. For more information, email us at