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In this section, we look at the resources used to produce electricity. Generating units are chosen to run primarily on their operating costs, of which fuel costs account for the lion's share. Therefore, we present below, electricity generation output by fuel type and generator type. Since the generator/fuel mix of utilities varies significantly by region, we also present generation output by region.
Net electricity generation in the United States decreased 0.8% compared to August 2024. All areas of the country, except for Florida, saw a decrease in electricity generation compared to the previous year. The Southeast saw the largest year-over-year decrease in electricity generation (down 3.5%), mainly due to states in this region experiencing significantly cooler temperatures this August compared to August 2024. This led to a decrease in the demand for residential cooling and thus, a decrease in the demand for electricity. Florida was the only outlier of all the regions, seeing a slight year-over-year increase of 0.4% in electricity generation. This area of the country experienced similar temperatures this year compared to last year, resulting in relatively the same amount of electricity generation this August compared to August 2024.
The change in electricity generation from coal was mixed throughout the country, with the Northeast, MidAtlantic, Central, and Florida all seeing an increase in coal generation compared to August 2024, while the Southeast, West, and Texas all saw a decrease in coal generation. All regions of the country saw a decrease in natural gas generation compared to last year, with the Southeast (down 10.4%) seeing the largest percentage decrease in natural gas generation compared to the previous year.
The chart above compares coal consumption in August 2024 and August 2025 by region and the second tab compares natural gas consumption by region over the same period. Changes in coal and natural gas consumption were similar to their respective changes in coal and natural gas generation.
The third tab presents the change in the relative share of fossil fuel consumption by fuel type on a percentage basis, calculated using equivalent energy content (Btu). This highlights changes in the relative market shares of coal, natural gas, and petroleum. The Central, Southeast, and Texas all saw their shares of coal increase at the expense of natural gas. All other areas of the country saw similar shares of coal and natural gas consumption when August 2024 is compared to August 2025.
The fourth tab presents the change in coal and natural gas consumption on an energy content basis by region. The changes in total coal and natural gas consumption were similar to the changes seen in total coal and natural gas net generation in each region.
To gain some insight into the changing pattern of consumption of fossil fuels over the past year, we look at relative monthly average spot fuel prices. A common way to compare fuel prices is on an equivalent $/MMBtu basis as shown in the chart above. The average price of natural gas at Henry Hub decreased from the previous month, going from $3.31/MMBtu in July 2025 to $3.01/MMBtu in August 2025. The natural gas price for New York City (Transco Zone 6 NY) also decreased from the previous month, going from $2.97/MMBtu in July 2025 to $2.30/MMBtu in August 2025. The average spot price of Central Appalachian coal decreased slightly from the previous month, going from $3.40/MMBtu in July 2025 to $3.37/MMBtu in August 2025.
A fuel price comparison based on equivalent energy content ($/MMBtu) does not reflect differences in energy conversion efficiency (heat rate) among different types of generators. Gas-fired combined-cycle units tend to be more efficient than coal-fired steam units. The second tab shows coal and natural gas prices on an equivalent energy content and efficiency basis. The Henry Hub natural gas price ($24.11/MWh) saw a decrease from the previous month ($26.50/MWh) and was below the Central Appalachian coal price ($36.37/MWh) in August 2025. The price of natural gas at New York City ($18.40/MWh) also saw a decrease compared to the previous month ($23.82/MWh) and was below the Central Appalachian coal price ($36.37/MWh).
The conversion shown in this chart is done for illustrative purposes only. The competition between coal and natural gas to produce electricity is more complex. It involves delivered prices and emission costs, the terms of fuel supply contracts, and the workings of fuel markets.
