Electric utilities get no jolt from improving economy, sales continue weak


Americans are plugging in more gadgets than ever, and the U.S. unemployment rate has been improving, but these trends have provided little help for the country's electric utilities.

U.S. electricity sales look anemic for the seventh year in a row, prompting some executives to abandon their century-old assumption that electricity use tracks overall economic conditions, according to a WSJ analysis.

The diverging trends could pose a problem for utility companies, which often need to expand sales volume yearly just to maintain their expensive equipment.

The U.S. Energy Information Administration says it no longer foresees any sustained period in which electricity sales will keep pace with economic growth.

ETFs: XLU, IDU, VPU, UPW, RYU, FUTY, FXU, SDP

From other sites
Comments (2)
  • sethmcs
    , contributor
    Comments (3531) | Send Message
     
    Yet electric consumption is growing by leaps and bounds in India and China. The answer is industry drives electric demand. Industry has not recovered in the US.
    29 Jul 2014, 12:28 PM Reply Like
  • cash
    , contributor
    Comments (681) | Send Message
     
    All our appliances, devices, bulbs, computers are getting more efficient as well at using energy. And that is a good thing. The tobacco companies also bemoan the fact that fewer people are smoking... Sheesh!
    29 Jul 2014, 12:33 PM Reply Like
DJIA (DIA) S&P 500 (SPY)
ETF Hub
ETF Screener: Search and filter by asset class, strategy, theme, performance, yield, and much more
ETF Performance: View ETF performance across key asset classes and investing themes
ETF Investing Guide: Learn how to build and manage a well-diversified, low cost ETF portfolio
ETF Selector: An explanation of how to select and use ETFs