The annual survey conducted by NUS Consulting Group of Park Ridge, N.J., independent consulting company, found that the average price of electricity in the United States was 8.82 cents per kilowatt-hour (kWh) as of April 1, 2006 compared with 7.95 cents per kWh in April 2005.
The survey sampled 24 of the largest investor-owned electric companies in the country using an industrial model of monthly usage totaling 450,000 kWh with a monthly demand of 1,000 kW. The survey model also assumed an operating power factor of 85 percent and customer-owned transformation equipment, the company said.
The study found customers in New York, New Jersey and California still pay some of the highest electricity prices in the country. However, in 2006, customers in Texas also joined this group as electricity prices in their State rose by more than 40 percent in just one year, according to the survey.
The top five surveyed utilities in terms of price included Consolidated Edison (NY) at 14.56 cents/kWh, Reliant Energy (TX) at 14.01 cents/kWh, Public Service Electric & Gas (NJ) at 12.72 cents/kWh, Texas Utilities (TX) at 12.33 cents/kWh, and National Grid (NY) at 12.09 cents/kWh.
The largest price escalation over the past year occurred in Texas as Texas Utilities customers witnessed their electricity bills increase 46.4 percent. Other utilities with notable increases included Reliant Energy (Texas) at 42.3 percent, Florida Power & Light at 28.7 percent, Public Service Electric & Gas (New Jersey) at 28.4 percent, and Progress Energy (Florida) at 24.3 percent.
The survey found the lowest-priced utilities included Dominion Power (Virginia) at 5.18 cents/kWh, Ameren UE (Missouri) at 5.46 cents/kWh, Duke Power (North Carolina) at 5.46 cents/kWh, Ohio Power at 5.50 cents/kWh, and Xcel Energy (Minnesota) at 5.73 cents/kWh.
NUS says the highest power prices can be found in those States that have deregulated their retail electricity markets.
"The survey really shows the interconnection of the energy markets," said Richard Soultanian, Co-President of the NUS Consulting Group. "Simply stated, as world oil prices rise so do the natural gas markets followed by the electricity markets.
"Those people looking for some level of relief need to understand that higher prices are here to stay and one needs to take matters into their own hands rather than to wait for some magic reduction in market prices. Contrary to the popular expression, good things do not always come to those who wait."
