The power sector is the second largest source of greenhouse gas emissions in the U.S. and accounts for one-quarter of total emissions.

Decarbonization of the power sector can play a leading role in cost-effective, economywide emissions reductions given that deep emissions reductions are projected to cost more in other sectors, and electrification is expected to be the lowest-cost means of decarbonizing many energy-using activities (NASEM, 2021). In this report, we examine the effects of several pathways to reduce GHG emissions in the U.S. power sector, and the impacts and opportunities for energy customers. For a brief summary of implications of the recently passed Inflation Reduction Act on this study, see the Summary for Policymakers.