Outside Market Forces for the Electric Industry
The electric sector interacts with many other industries through a number of markets. Some of these interactions entail the purchase of goods and services required by the electric business. In addition, the electric sector often competes with other energy industries to provide end-use energy services. This chapter discusses these interactions.
Fuel Suppliers
The vast majority of the variable cost for the electric industry is for the purchase of fuel. The industry buys about $200 billion per year. The major fuels are coal, natural gas, and nuclear fuel. Other fuels include geothermal steam, landfill methane, municipal waste, water, solar, and wind. Some of these fuels are purchased in traditional ...
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