US power prices jump 9% in 2006, largest increase since 1981: EIA

Washington (Platts)--22Oct2007


US retail electricity prices rose by more than 9% in 2006, the largest
annual increase since 1981, the Energy Information Administration said Monday
in its Electric Power Annual 2006.

The agency said 14 states and the District of Columbia saw their average
price of electricity rise by 10% or more between 2005 and 2006. While retail
power prices increased in all regions of the country, most of the larger
increases were in the East, driven by the lifting of retail electricity price
caps in states transitioning to competitive retail markets.

The elimination of the caps allowed the pass-through to consumers of
previous increases in costs that had not been completely reflected in prices
while the caps were in place.

EIA also said that in 2006 emissions of carbon dioxide, sulfur dioxide,
and nitrogen oxides from electricity generation declined. Sulfur dioxide
emissions fell 7.9%, the largest drop since a 9.2% reduction in 2000.

Carbon dioxide emissions fell 2.2%, and nitrogen oxides emissions were
down 4.1%, EIA said.

The agency attributed the reduction in emissions from the generation
sector to decreases in overall generation from fossil fuels and increases in
generation from nuclear, hydroelectricity and wind and changes in the mix of
fossil-fueled generation, with less generation from coal and petroleum and
more generation from cleaner burning natural gas.

In addition, the report said that generation and sales to customers
reached record levels in 2006, despite milder summer and winter temperatures.