In order for fusion energy to be a viable option for electric power generation, it must either directly compete with future alternatives or serve as a reasonable backup if the alternatives become unacceptable. This paper discusses projected costs for the most likely competitors with fusion power for base-load electric capacity and what these costs imply for fusion economics. The competitors examined include advanced nuclear fission and advanced fossil-fired plants. The projected costs and their basis are discussed. The estimates for these technologies are compared with cost estimates for magnetic and inertial confinement fusion plants. The conclusion of the analysis is that fusion faces formidable economic competition. Although the cost level for fusion appears greater than that for fission or fossil, the costs are not so high as to preclude fusion's potential competitiveness.