Average U.S. Electricity Prices Jump 4.7 Percent

 

PARK RIDGE, N.J., June 4, 2007 /PRNewswire

 

Following a stunning increase of nearly 11 percent in the year ending in April 2006, the average price of electricity for industrial or large commercial entities in the United States jumped another 4.7 percent over the past year.

The annual survey by an independent consulting company, NUS Consulting Group of Park Ridge, N.J., found that the average price of electricity in the United States was 9.28 cents per kilowatt-hour (kWh) as of April 1, 2007 compared with 8.86 cents per kWh in April 2006. The survey samples 24 of the largest investor-owned electric companies in the country using an industrial model of monthly usage totaling 450,000 kWh with a monthly demand of 1,000 kW. The survey model also assumes an operating power factor of 85 percent and customer-owned transformation equipment.

As with past surveys, the study found customers in the California, Maryland and New York pay some of the highest electricity prices in the country. The top five surveyed utilities in terms of price included Consolidated Edison (NY) at 18.29 cents/kWh, National Grid (NY) at 14.06 cents/kWh, Baltimore Gas & Electric (MD) at 12.98 cents/kWh, Southern California Edison (CA) at 12.65 cents/kWh, and Pacific Gas & Electric (CA) at 11.45 cents/kWh.

The largest price escalation over the past year occurred in Illinois as ComEd industrial customers witnessed their electricity costs increase by 36.1 percent. Other utilities with notable increases included Consolidated Edison (NY) at 25.6 percent, Xcel Energy (MN) at 22.1 percent, Entergy (LA) at 17.5 percent and National Grid (NY) at 16.4 percent.

The survey found the lowest priced utilities included Dominion Power (VA) at 5.20 cents/kWh, Duke Power (NC) at 5.28 cents/kWh, Ohio Power at 5.34 cents/kWh, Ameren UE (MO) at 5.46 cents/kWh, and Alabama Power at 6.30 cents/kWh. The largest price decreases over the past year were found with Southern California Edison at 13.3 percent and Public Service Electric & Gas (NJ) at 11.5 percent.

As borne out in previous surveys, the highest power prices can be found in those states that have deregulated their retail electricity markets. Considered in the past by many as a means of lowering electricity prices, the central promise of deregulation has yet to be fulfilled for many consumers.

"The survey once again reveals that higher energy prices seem to be here to stay," said Richard Soultanian, co-president of the NUS Consulting Group. "Retail deregulation is currently either stalled or ineffective in much of the country and many people are looking for answers to their ever increasing electricity bills."

He concluded by saying, "In today's market, consumers must be vigilant in tracking their energy costs or they run the risk of losing their competitive edge."

The survey was undertaken by the world's leading utility cost management consultants, NUS Consulting Group located in Park Ridge, New Jersey providing energy and telecommunication cost audit, analysis and consulting services to industrial and commercial organizations. Additional information concerning the NUS Consulting Group can be obtained from their website at www.nusconsulting.com.

SOURCE NUS Consulting Group

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