Residential customers are paying 2.1% less for every kilowatt-hour than two years ago, and commercial customers are paying 5.5% less.
On Tuesday, the Energy Department released electricity industry data for September. The average price for residential electric service was 12.87 cents per kilowatt-hour. For commercial service, it was 10.70 cents.
Let’s see how the price of electric service has come down, first ignoring general inflation, and then appropriately including it.
Ignoring general inflation, September electric service for residential customers was 1.2 percent lower than in September 2015 and 0.6 percent lower than in September 2014.
Again, ignoring general inflation, September electric service for commercial customers was 2.8 percent lower than in September 2015 and 4.1 percent lower than in September 2014.
But including general inflation, September electric service for residential customers was 2.7 percent lower than in September 2015 and 2.1 percent lower than in September 2014.
Again, including general inflation, September electric service for commercial customers was 4.2 percent lower than in September 2015 and 5.5 percent lower than in September 2014.
That’s really something! Residential customers are paying over two percent less for every kilowatt-hour than two years ago. And commercial customers are paying well over five percent less than two years ago.
Someone must be doing something right.
Number-crunching courtesy of Public Utilities Fortnightly.
