The latest Electric Power Monthly report from the Energy Information Administration (EIA) shows yet another increase in residential electricity rates for May. This latest increase put rates over 13% higher than they were in January of this year. In May, residential electricity rates acrossthe U.S. were on average 11.96 cents/kWh. To put that in perspective,if we consider that an average household might use 1,000 kWh/month,then that household is now paying $15/month more for their electricity.
Other data from the EIA reports that net generation is up 5.2% fromlast year with the majority of the increases coming from fossil fuelsources such as coal. In fact, coal-fired generation represented thelargest absolute fuel-specific increase in the past year with an 8.9%jump in generation. This represented almost three-quarters of theoverall national rise in generation.
The coming months will prove interesting as the price of residentialelectricity may surpass the high of August 2008, when rates we at 12.06cents/kWh.
By Matthew Ryder-Smith