War, Gas, Electricity
The price of natural gas has been high since Russia invaded Ukraine, which is impacting the provision of electric and natural gas utility service of course.
PUF's Where's Energy
Prices and Pitchforks
The notion of timing incremental changes has often been a powerful tool in utility ratemaking.
Roller Coaster
In Q2 2022, 1.34 percent of consumer expenditures were on electricity. That’s one and a third percent.
How about we express this as a fraction? One-seventy-fifth of what consumers spent was for electricity.
Historically, 1.34 percent is fairly moderate. Over the last ten years, electricity’s percentage of Q2 consumer expenditures was 1.40 percent or more from the year 2013 through 2016. In 2017 and 2018 it dipped to 1.36 percent and 1.34 percent respectively.
Second Quarter GDP data
On July 28, the Commerce Department published the Gross Domestic Product data for the second quarter. This key economic indicator tells us, among other things, where we are with respect to utility expenditures.
Overall consumer expenditures, nationwide, were up 8.4 percent year-over-year in Q2. Expenditures on consumer goods were up 6.4 percent. But on consumer services they were up 9.5 percent.
Getting Gas
Ah, for the good old days. Gas was $3.56 on December 30.
Up, Up and Away
Consumers spent 19.5% more on electricity this May than in May 2021.
Natural Gases
When gas generation is constrained, it's bad news for combating climate change.
Thinking About Nothing in Particular
Utility commitments to get to zero by a particular time, say 2045, seem to hold much more sway among certain constituencies than minimizing emissions along the way to that zero-target year. Which is weird I think and somewhat unfortunate.
Rates and Pizza
Want to get up to speed on gas ratemaking? Well then, head to Chicago this summer.
Less Friendly Skies
Gasoline is up 66.3%, home heating oil/distillates is up 116.8%, and jet fuel is up 139.5%.