Contact Information: Contact: David Brown (201) 391-4300 ext. 105 dbrown@nusconsulting.com Jeanne Achille The Devon Group (732) 224-1000, ext. 11 jeanne@devonpr.com
Average U.S. Electricity Prices Rise 3.9 Percent
| Source: NUS Consulting
PARK RIDGE, NJ--(Marketwire - May 19, 2008) - Following an increase of nearly 5 percent in
2007, the average price of electricity for industrial or large commercial
entities in the United States rose another 3.9 percent over the past year.
The annual survey by an independent consulting company, NUS Consulting
Group of Park Ridge, NJ, found the average price of electricity in the
United States was 9.44 cents per kilowatt-hour (kWh) as of April 1, 2008
compared with 9.08 cents per kWh in April 2007. The survey samples 24
investor-owned electric companies in the country using a sample 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.
The study found customers in California, Illinois, New York and Texas pay
some of the highest electricity prices in the country. The top five
surveyed utilities in terms of price included Consolidated Edison (NY) at
18.07 cents/kWh, National Grid (NY) at 15.22 cents/kWh, Commonwealth Edison
(IL) at 13.08 cents/kWh, Southern California Edison (CA) at 12.47
cents/kWh, and Reliant Energy (TX) at 12.34 cents/kWh.
The largest price escalation over the past year occurred in Maryland as
Baltimore Gas & Electric Company's industrial customers saw their
electricity costs increase by 18.5 percent. Other utilities with notable
increases included Commonwealth Edison (IL) at 18.4 percent, Reliant Energy
(TX) at 17.0 percent, Alabama Power (AL) at 15.5 percent and Progress
Energy (FL) at 13.1 percent.
The survey found the lowest priced utilities included Duke Energy (NC) at
5.21 cents/kWh, Ameren UE (MO) at 5.26 cents/kWh, Dominion Power (VA) at
5.54 cents/kWh, Ohio Power at 5.84 cents/kWh, and Excel Energy (MN) at 6.94
cents/kWh. The largest price decreases over the past year were found with
Excel Energy (MN) at 7.6 percent and Pennsylvania Power & Light at 5.5
percent.
As borne out in previous surveys, the highest power prices are usually
found in those states that have deregulated their retail electricity
markets. Once considered a means of lowering electricity costs,
deregulation has yet to fulfill this central promise.
"While not as dramatic in its price rise as in the oil or gasoline sectors,
the survey seems to confirm that higher electricity costs are here to
stay," said Richard Soultanian, co-president of the NUS Consulting Group.
"We fully expect this trend to continue as energy prices, both here in the
US and abroad, continue their meteoric rise."
He concluded by saying, "Today's energy markets are more volatile than
ever. The days of cheap power are now a distant memory and all businesses
must learn to not only adjust, but survive, in this type of purchasing
environment."
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 telecommunications 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.