Electric Utilities: A Time of Transition

Electric utilities are not a critical part of the oil crisis because they are consuming a decreasing share of oil and they burn plentiful residual oil, which is not used for home heating or for transportation. The decline in oil use will continue and intensify as electricity demand increases. Coal- and gas-fired generation have increased correspondingly as a result of market incentives more than of subsidies or regulations. Coal will be the major replacement fuel, while nuclear plants will only reduce oil-fired plants if they are located in areas heavily dependent on oil as a major utility fuel. The author points out that even if all existing nuclear, oil, and gas generation plants were to be replaced eventually by coal, no increase in pollution need occur; modern pollution control equipment installed on existing and new or converted plants could reduce SO/sub 2/ and NO/sub x/ emissions to about 1/2 of current levels and smoke (particulates) to 1/10.