2. 2016 Energy Production and Consumption Declines
Total 2015 US energy production from all major fuel sources was quadrillion Btu, which is just an 0.05% increase from 2014, with fossil fuel sources increasing 0.08% and nuclear and renewable energy sources essentially flat.
During the first 9 months of 2016, however, total energy production decreased 5.1%, to billion Btu, compared to the first 9 months of 2015, which totaled Btu.
On the consumption side, 2015’s total of billion Btu was 0.09% less than 2014’s, and, for the first 9 months of 2016, consumption decreased 0.08%, compared to the first 9 months of 2015.

3. Reducing the Reliance on Coal
The US Energy Information Administration (EIA), in its January 2017 Today in Energy report, stated that 2016 US coal production will total 743 million short tons (MMst), or 17% less than 2015, a declining production trend since 2008.
Low natural gas prices, warmer-than-normal temperatures during winter 2015–2016, the closing of some coal-fired generators and less international coal demand have been the major drivers of coal-production declines.
The EIA also reported that natural gas-fired electricity generation had a 34% share of all electricity generation during 2016, compared to 30% for coal, making 2016 the first year more natural gas was used than coal to generate electricity.

4. Warmer Temperatures Temper Natural Gas Prices
With approximately half of all US homes relying on natural gas for heat, winter weather has a major impact on supply and prices. As of January 9, 2017, prices had decreased 21% since December 28, which was a two-year price peak.
A forecast of very cold weather for the first part of January prompted the price peak; however, after a week of cold, the forecast changed dramatically to above-average temperatures for most of the eastern half of the US through the end of the month.
During October 2016, the EIA predicted that consumers would be paying 22% more for natural gas during the winter 2016–2017 heating season; however, the increase would be only 10% if the winter was 10% warmer, which may be the end result.

5. Renewable Energy Is the Future
During November, the Obama administration announced the addition of 48 new “charging corridors” for electric vehicles that include 25,000 miles of major highways in 35 states and charging stations located at approximately 50-mile intervals.
Most of these charging stations will be installed during 2017, which could boost electrical demand, reversing the lower consumption in transportation retail electricity sales during the first 9 months of 2016, compared to the same period during 2014 and 2015.
During the first 9 months of 2016, all 5 renewable energy sources – hydro-electric power, geothermal, solar, wind and biomass – increased production and consumption.

6. Utilities’ Risk Factors on Climate Change
Although there is still lively debate as to the cause of global warming, the trend is indisputable, as the first six months of 2016 were the warmest half-year globally since modern temperatures were first recorded during 1880.
According to a 2016 Investor Responsibility Research Center Institute study, Sempra Energy and NextEra Energy, two of the top 25 US investor-owned utilities, have the highest proportion of renewal energy sources in their generation mix.
AES, NiSource, DTE Energy, Ameren, CMS Energy and AEP are the top 25 US investor-owned utilities most at risk in terms of their energy generation mix, as all six utilities rely on coal for at least 75% of their electricity.

7. Advertising Strategies
As electric utilities evolve from coal generation to natural gas and renewable energy sources, they should continue to incentivize consumers who make energy-efficient improvements in their homes, appliance purchases and other energy uses.
With TV the most-ubiquitous medium in American households, it is the best branding channel for utilities, especially prior to and during peak usage seasons.
Be aware of renewable energy companies, especially wind and solar, expanding their services in your market and show them why TV is where they want to brand their name and share information about the benefits of renewable energy compared to fossil fuels.

8. New Media Strategies
Because consumers prefer to engage with companies that are actively involved in the community, utilities’ should post photos and videos of their local educational and outreach programs for children, homeowners, businesses, seniors and others.
Ask customers and social media visitors to participate in a “Saving Energy Today” program by posting videos of what they did today to save energy, and challenging others to use these energy-saving ideas.
Utilities that provide energy education modules and/or presentations at elementary schools can ask students to draw pictures depicting how people waste energy, and then feature a few in social media posts during the school year.