During the current economic crisis, the electric power industry is experiencing financial pressures similar to many other industries, businesses, and individuals.

As one of the nation’s most capital-intensive industries, access to capital markets is critical to allow companies to build the necessary infrastructure to meet growing electricity demand. Commodity and equipment prices, along with labor costs, have declined recently, which would normally make this an ideal time to build. However, the current financial crisis severely affects companies' access to capital markets. Many electric companies are facing difficult decisions about deferring capital expenditures during this challenging time.

While electricity demand has slowed recently, this is a short-term situation due to the economic environment. No one knows the depth or duration of the recession and its impact on electricity demand. Electric companies must continue to invest in the future to ensure the reliable, affordable electricity Americans have to come to expect.

EEI Resources

• The Financial Crisis and Its Impact on the Electric Utility Industry