Efficiency of electric power generation in the United States: Analysis and forecast based on data envelopment analysis

Abstract

This paper estimates the efficiency of electric power generation in the United States for the period of 1991 through 2004 using Data Envelopment Analysis (DEA). Operating expenses and energy loss are used as inputs, utilization of net capacity, as an output. Obtained results point to a relative stability in efficiency from 1994 through 2000 at levels of 99–100% with a sharp decline to 94–95% levels in the years following. Efficiency is also forecasted for year 2010, and calculated to equal 96.80%, which means it remains below the values of previous years. Lastly, a model of efficiency management is introduced and discussed.