Dow Jones reported that US electricity demand is expected to drop 0.8% in 2009, pushed lower by declining industrial demand.

In its monthly Short Term Energy Outlook, Energy Information Administration again lowered its outlook for electricity demand, having forecast last month consumption would fall 0.5% for the year. Driving the forecasted drop in power demand is an expected decline of nearly 5% in industrial demand.

The EIA said that power consumption, which was nearly flat in 2008, will rebound 1.3% in 2010 as the economy improves. That's slightly lower than last month's forecast of a 1.5% increase. At the same time, the EIA kept its outlook for residential power prices the same, forecasting a 2.3% increase this year and a 2.0% increase next year. That follows an estimated 6.5% increase in prices last year.

The EIA in its January outlook projected production to decline 4% this year before rebounding to grow 2.4% in 2010. The EIA in last month's outlook projected a 12% decrease in exports in 2009 and a 12% increase in 2010.

(Sourced from www.dowjones.com)

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