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1 1 (April 1, 2020)

handle is hein.crs/govctyw0001 and id is 1 raw text is: Researh Sevice COVID-19: Potential Impacts on the Electric Power Sector April 1, 2020 The COVID-19 pandemic could impact the electric power sector directly (e.g., illness in the workforce) or indirectly (e.g., reduced economic activity caused by responses by governments, businesses, and the public at large). In the near-term (i.e., the next few weeks), most impacts will likely be caused by reduced economic activity. Long-term impacts are highly uncertain and likely depend on the pandemic's ultimate toll on U.S. public health and the economy. Potential impacts include reduced electricity demand, electric reliability risks, reduced utility bill payments, and delayed or reduced industry investment activity. Congress could choose to address these issues, or related issues, in future bills addressing the pandemic, in annual appropriations (which are currently being discussed for FY2021), in supplemental appropriations bills, or in other legislation. Reduced Electricity Demand Electricity demand is determined mainly by weather patterns and economic activity. Economic activity in recent weeks has declined across the country, as governments take actions to slow the spread of COVID- 19. These actions have forced many businesses to close or curtail operations. Preliminary reports suggest the reduction in business activity may be reducing electricity demand up to 18/o, though not all regions are seeing reductions. The relative impacts of closures and mild weather are yet to be determined. Analysis of changes in electricity usage in Italy and Spain, after those countries closed many businesses in response to COVID-19, suggest that sustained reductions of 10%-20% are likely for as long as closures are in effect. Reduced electricity demand tends to lower wholesale electricity prices in the near term, as is also the case for other energy commodities like gasoline. Consumers may not see lower retail electricity prices, though, because of the timeline of electricity rate regulation by states. Reduced electricity demand could persist for months or longer. If demand and prices remain low for extended periods of time, some power plants may become unprofitable. Several parts of the country have seen power plant retirements in recent years as changing conditions in the sector affect profitability. Congressional Research Service https://crsreports.congress.gov IN11300 CRS NS GHT Prpred For Meumbers and Comrm ttees of Conress ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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