This week, the Commerce Department released details on the 2017 Gross Domestic Product. It shows electric bills were 1.32 percent of consumer expenditures. This is the lowest percent in the fifty-nine years of data, back to 1959.
1959 was a big year, aside from the government beginning to detail the GDP. Rawhide, Bonanza and Twilight Zone were TV shows. Nixon debated Khrushchev in a kitchen. Barbie Dolls and the Boeing 707 had their debut. Most importantly, February third that year was the day the music died, when Buddy Holly, Richie Valens and the Big Bopper’s plane went down. (Per Don McLean’s American Pie.)
Back to business. 2017 was even lower than 2016, which was the first year in which electric bills fell below 1.40 percent of consumer expenditures. 2016 now holds second place, with 1.38 percent.
Electric bills were as high as 1.63 percent of consumer expenditures as recently as 2010. The highest percent in the fifty-nine years of data is 2.27 percent, in 1982.
Back in 1959, electric bills were 1.48 percent, though American households used electricity much less in those days. In the sixties, the percent generally rose. In 1961 through 1963, electric bills were 1.56 percent each year. Though they dipped to 1.45 percent in 1968 and 1969, before rising again as world oil prices were driven up by OPEC.
1969 was a big year too. Armstrong and Aldrin did the moon walk. Hendrix, Santana, Sly and Janis played in Woodstock. Sesame Street started. As did ARPANET, which is kinda how you’re reading this now.
For ninety years, since 1928, Public Utilities Fortnightly has served as the platform for thought leaders to impact the debate in utility regulation and policy. Join the debate. Have your organization join the debate, as a member of the PUF community.
Steve Mitnick, Editor-in-Chief, Public Utilities Fortnightly
E-mail me: mitnick@fortnightly.com