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Law & Lawyers

How Electric/Gas Utility Expenses Vary by Age

As households age, they spend less on electricity in dollars, but more as a percent of all their expenditures

The Labor Department has published Consumer Expenditure Survey data on how Americans of different ages spend differently. The survey shows how age affects expenses for electric and natural gas utility service. 

Twenty-two percent of households were classified as the youngest. Those surveyed averaged twenty-seven years old. 

These households spent $1,125 on electric service, on average, during the twelve months through June 2015. 

Byline: 

Steve Mitnick

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PPI for Generation Lowest Since 2004

Electric generation prices in August were at their lowest point since August 2004, twelve years ago

Electric generation prices are down 15.7 percent since 2011. Prices are down 19.7 percent since 2008.
Byline: 

Steve Mitnick

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October excerpt: Why financial strength matters

An excerpt from October’s Public Utilities Fortnightly, among the 23 articles, columns and letters in this issue

An excerpt from October’s Public Utilities Fortnightly, From the Editor, pages 4 and 6:

If you believe the nation’s electric grid (including its generating, transmission and distribution infrastructure) doesn’t need much tending to, doesn’t need much capital investment, then the financial strength of our utilities doesn’t matter much to you. 

But consider the converse. If you believe the grid does need much tending to, does need much investment, then the financial strength of our utilities does matter a whole lot to you… 

Byline: 

Steve Mitnick

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Flat Rates Were Known in 1917 as the American Plan 

A number of states are discussing retail electric and gas distribution rates based on demand considerations. It may come as a surprise, to some, that demand rates are not new at all to the public utility industry. 

According to my 1917 edition of Public Utility Rates by Harry Barker, the concept of a multi-part tariff was first introduced in 1892. 

Dr. John Hopkinson in England gave an address to the Junior Engineering Society. His two-part demand and energy rate is still known as the Hopkinson Demand Rate. 

Byline: 

Branko Terzic

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'Cause We are the Champions of the World

With electric service at the all-time low as a share of consumer expenditures, it’s time for regulators, utilities, advocates to claim their achievement.

We are the champions.
We are the champions.
No time for losers.
'Cause we are the champions of the world.


As we wrote yesterday, electric service has never been cheaper for the American consumer than it was in November. Never. Ever. 

Over the last 695 months! Since January 1959, when The Chipmunk Song and then Smoke Gets in Your Eyes made it to the top of the Billboard Hot 100.

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Getting Past Net Metering

A forward-looking solution to rate reform, for when solar costs hit bottom.

Why keep rate design shackled to the ways of the past, especially at the dawn of a solar revolution?
Byline: 

John Sterling

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Home Gas Use in 2015

Annual gas usage by households has remained in range of 4.3-5.2 quadrillion cubic feet since 1967

For the first nine months of last year, through September 2015, households used 3.4 quadrillion cubic feet of natural gas.  Usage was down by 2.5% as compared to the same period of the prior year, 2014.  The difference, mainly a weaker January, and March as well.  These months in 2014 were much colder in 2014 than in 2015.  

The all-time record year for residential gas consumption was 1996,  and second place is held by 1972.  Third place is held by 2014, when consumption was only 2.9% short of 1996 and 0.8% of 1972.    

Byline: 

Steve Mitnick

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With November, 2015 Residential Rates 1.2 Percent Over 2014

Residential rates 15 hundredths higher, commercial rates 14 hundredths lower

Average residential rates were 12.7 cents per kilowatt-hour nationally in 2015 through November, per the Energy Department. That’s slightly above what rates were in the prior year, by 1.2 percent. Unadjusted for inflation.

Byline: 

Steve Mitnick

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Another Era of Cheap Electricity?

Friday’s GDP data: now 11 months in a row where electric bills have been 1.5% or less of personal expenditures.

Good news this Monday morn. You probably saw Friday the Commerce Department's announcement about the nation's Gross Domestic Product, the GDP. Buried in the many numbers used to figure out the GDP, electric bills were just 1.4 percent of personal consumption expenditures. 

Over two-thirds of the GDP is spent by and for individuals and families. These personal expenditures amount to a big number, more than twelve and a half trillion dollars. 

Byline: 

Steve Mitnick

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