Problems with the supply of oil made things quite tough for American electricity companies
As opposed to common thought, a coal-powered plant doesn’t turn 100% of the coal energy it burns into electricity. By 1892, the average power plant operated at a 2% rate. The rate rose gradually and when it got to 40% by 1940, coal tycoons thought it would keep going up. However, by the 1960s, it was clear this wouldn’t happen. No technological advancement could further increase the efficiency of coal-powered plants.
This is because the electricity-generating heat engines used in this process can’t surpass 50% efficiency, in theory — the rates are lower practically. Aside from being practically improbable, raising the efficiency rates would be extremely expensive due to the cost of required maintenance.
More problems would later ensue as there was a sudden inflation in the price of fuel and construction cost of large power plants. Due to this development, companies raised the price of electricity and also encouraged consumers to conserve power.
In an attempt to increase efficiency, electricity companies started abandoning coal in favor of oil through the 1950s and 1960s. However, in 1973, Arab oil producers stopped exporting oil to America as retaliation for the country’s support for Israel in the Arab-Israeli war. This oil embargo made petroleum prices skyrocket by about 70%.
⚡️To maintain solvency, electricity companies had to increase their prices, which resulted in dissatisfied customers. This became an issue electricity companies had to battle for a while.