The falling percentage of electric bills has freed nearly 1% of consumption expenditures since the 1980s.
Last week, the Commerce Department's data for the Gross Domestic Product again highlighted electricity's affordability. Residential electric bills in May were 1.40 percent of personal consumption expenditures nationally.
This compares to 1.46 percent in May 2015, 1.43 percent in May 2014, and 1.43 percent in May 2013.
And compares to 1.40 percent in April 2016, 1.36 percent in March 2016, 1.39 percent in February 2016, and 1.41 percent in January 2016.
Bottom line? Residential electric bills have been consistently moderate for a while.
Indeed, electric bills were at an all-time record low in May 2016, when measured as a percentage of consumption expenditures. Only May 2005 came in as low as 1.40 percent, sharing the all-time record with May 2016.
Electric bills were a higher percentage of consumption expenditures in every other May since May 1959. That's a period of fifty-eight years.
Electric bills were a much higher percentage of consumption expenditures in some past Mays. In May 1991, electric bills were 2.17 percent. And in May 1982, electric bills were 2.32 percent. This was the all-time record high.
In other words, the falling percentage of electric bills has freed nearly one percent of consumption expenditures since the 1980's. (2.32 percent minus 1.40 percent equals 0.92 percent, nearly one percent.)
This has enabled consumers to spend the savings on other goods and services they need and want.
Number-crunching every month of the Commerce, Labor, Housing and Urban Development, and Energy Department data reports of importance to our industry, courtesy of Public Utilities Fortnightly.
Steve Mitnick, Editor-in-Chief, Public Utilities Fortnightly
E-mail me: mitnick@fortnightly.com
