US Electricity Prices Rise Most in 41 Years as Inflation Endures

US Electricity Prices

WASHINGTON -

Electricity bills for US consumers jumped the most since 1981, gaining 15.8% from the same period a year ago, according to the US Bureau of Labor Statistics.

Natural gas bills, which crept back up last month after dipping in July, surged 33% from the same month last year, labor data released Tuesday showed. Broader energy costs slipped for a second consecutive month because of lower gasoline and fuel oil prices. Even with that drop, total energy costs were still about 24% above August 2021 levels.

Electricity costs are relentlessly climbing because prices for the two biggest power-plant fuels -- natural gas and coal -- have surged in the last year as the US economy rebounds from the pandemic and as Russia’s war in Ukraine triggers an energy crisis in Europe. Another factor is the hot and humid summer across most of the lower 48 states drove households and businesses to crank up air conditioners. Americans likely used a record amount of power in the third quarter, according to US Energy Information Administration projections.

New York’s state grid operator warned of a “sharp rise in wholesale electric costs expected this winter” with spiking global demand for fossil fuels, lagging supply and instability from Russia’s war in Ukraine driving up oil and gas prices, according to a Tuesday report. Geopolitical factors are ultimately reflected in wholesale electricity prices and supply charges to consumer bills, the New York Independent System Operator said.

Electricity price futures for this winter have increased fourfold from last year, with prices averaging near $200 a megawatt-hour, the grid operator said. That has been driven by natural gas futures for the upcoming winter, which are more than double current prices to nearly $20 per million British thermal units.

Related News

site C

When did BC Hydro really know about Site C dam stability issues? Utilities watchdog wants to know

VANCOUVER - The watchdog B.C. Utilities Commission has sent BC Hydro 70 questions about the troubled Site C dam, asking when geotechnical risks were first identified and when the project’s assurance board was first made aware of potential issues related to the dam’s stability. 

“I think they’ve come to the conclusion — but they don’t say it — that there’s been a cover-up by BC Hydro and by the government of British Columbia,” former BC Hydro CEO Marc Eliesen told The Narwhal. 

On Oct. 21, The Narwhal reported that two top B.C. civil servants, including the senior bureaucrat who prepares Site C…

READ MORE
ukraine

Ukraine has electricity reserves, no more outages planned if no new strikes

READ MORE

danish wind power

Wind Denmark - Danish electricity generation sets a new green record

READ MORE

powerlines

California lawmakers plan to overturn income-based utility charges

READ MORE

Nuclear alert investigation won't be long and drawn out, minister says

READ MORE