The Energy Grid - Part 3

In Parts 1 and 2, Cogport reviewed the Current Situation of the Electric Grid Capacity, and Future Demand.

The Analysis showed that the U.S. needs to add 260,000 Megawatts (MW) of capacity by 2030. The future Demand shows we need 260 new plants producing 1,000 MW on average.

That is a challenging goal considering the cost of new plants, and the long lead-time to build them

The Public Utilities have no plans for this kind of investment and Government Policy is nowhere to be found to resolve the issue.

How should a National Plan look?

Once again, we need to look at the data.

Let’s first review the different potential sources for new energy – based on cost to consumer and initial investment cost for new plants. 

The Data will lead us to a proposal for a New Plan.

This Table summarizes the average cost of Electric by Fuel Source as delivered to residential customers at the meter:

Fuel Source                                               Cost per kWh delivered

Coal                                                                    $ 0.14

Natural Gas                                                         $ 0.16

Nuclear (Large)                                                   $ 0.16

Small Nuclear Reactors (SMR’s)                        $ 0.18

Solar                                                                   $ 0.22

Wind                                                                   $ 0.20

Hydro                                                                  $ 0.17

Fuel cell                                                              $ 0.16

For reference, the average cost of delivered electric in the U.S. today is $0.18 per kWh from all sources combined.

The average residential consumption is about 10,800 kWh per year.  That computes to an annual average of $ 1,944 per year, or $ 162 per month.

Your personal bills will vary largely depending on location (climate and sources), size of household, and actual consumption (usage demand).

A few local comparisons:

State           Avg Cost (kWH)      Avg Usage (kWh)        Avg Monthly Bill

California         $ 0.32                           6,000                     $ 160

New Jersey     $ 0.25                            7,944                     $ 166

Kentucky         $ 0.14                          12,564                     $ 147

Commentary

The table below demonstrates the variation in experience for different locales and energy policies.

California: price is high, but consumption low due to mild climate (heating and cooling costs are low)

New Jersey: price is high, but consumption is moderate.

Kentucky: price is low but consumption is higher due to more extremes in climate.  Cost is low due to legacy coal plants still in operation and hydro power components of the energy base.

Cost to Build New Plants – Initial Investment Required For 1000 MW

Type                                                       Nameplate                       Usable   

                                                               Capacity (1000MW)        Capacity 

Coal (with U.S. Emissions Controls)         $  3.2 Billion                      50%

Natural Gas                                              $ 1.2 Billion                       55%

Nuclear (Large)                                        $ 5.6 Billion                      90%

Small Nuclear Reactors (SMR’s)              $ 4.0 Billion                      90%

Solar                                                         $ 1.0 Billiion                      25%

Wind                                                         $ 1.2 Billion                       35%

Hydro                                                       $ 3.5 Billion                      55%

Fuel cell                                                    $ 2.5 Billion                      80%

We can quickly eliminate Coal, Solar and Wind as potential for future investment based on initial cost, limited usable capacity, and high cost per kWh delivered at the meter.

Summary

Many factors remain to be evaluated for a comprehensive plan to meet a goal of 260,000 MW of new capacity by 2030. 

Cogport has provided the basic cost data needed to propose a plan and policies for the future.

The next report will parse out the data and start the proposal.

David Hollaender                                    January 12,2026

Cogport.com