Electric Rate Inflation

Residential electric rates were 15.8 percent higher in August than they were in August of last year on average nationally. According to the Consumer Price Index report released on September 13.

The numbers regionally varied a lot.

Rates were 19.5 percent higher in the northeast. And 18.4 percent higher in the south. Both these regions were well above the national average.

But they were 10.2 percent higher in the west. And 12.0 percent higher in the midwest. Both these regions were well below the national average.

The regional differences make sense.

The northeast and south are especially dependent on natural gas-fired generation. While the west and midwest are less dependent on gas-fired generation.

According to last week’s Producer Price Index report, natural gas prices paid by generation owners were 43.9 percent higher in August than they were in August of last year on average nationally.

The overall CPI for all goods and services was 8.3 percent higher this August. That’s a national average.

Regionally, the overall CPI was up 8.9 percent in the south while it was up 7.4 percent in northeast. And it was up 8.1 percent in both the west and midwest. So, the overall CPI numbers varied much less than did the electric rate numbers.