Authored by Mike Shedlock via MishTalk.com,
Natural gas prices are soaring and the price of electricity along with it. How much more are you paying?
CPI data from the BLS via St. Louis Fed, chart by Mish
Electric Rates in Texas Have Surged Over 70% as Summer Kicks In
On June 2, the Dallas Morning News reported ‘We’re in trouble’: Electric Rates in Texas Have Surged Over 70% as Summer Kicks In
The price of natural gas has increased even more than crude oil, but many consumers may not have noticed. They will soon enough — in higher electric bills.
How much higher? Over 70% higher than a year ago for residential customers in Texas’ competitive market, according to the latest rate plans offered on the state’s Power to Choose website.
This month, the average residential rate listed on the site was 18.48 cents per kilowatt hour. That’s up from 10.5 cents in June 2021, according to data provided by the Association of Electric Companies of Texas.
For a family using 1,000 kWh of electricity a month, that translates into a monthly increase of roughly $80. Over a full year, that would sap nearly $1,000 extra from the family budget.
“We’ve never seen prices this high,” said Tim Morstad, associate state director for AARP Texas. “There’s going to be some real sticker shock here.”
Sticker Shock
The Dallas Morning News posted a chart but some of the data was stale (as of April), the BLS discontinued Los Angeles, and Chicago is not available monthly.
My chart shows major metro areas with monthly posting current through July.
The average US household pays a whopping 47.3 percent more for electricity than a year ago.
Texas is deregulated, most states aren’t . But utilities, even when regulated, can and do petition for rate hikes when their costs go up.
The percentage is important, but so is the starting point.
CPI Electricity Index Level
CPI data from the BLS via St. Louis Fed, chart by Mish
As miserable as many cities looks, San Francisco is in a class by itself.
Cost Per Kilowatt-hour
Electricity price data from the BLS via St. Louis Fed, chart by Mish
Note that the key consumer cost is not just the price per kilowatt-hour but how much electricity one uses.
Cities with hotter summers will use a lot more electricity for air conditioning than cities high in the mountains.
US Natural Gas Price At 14-Year Peak, EU Hits New Record
US Natural Gas Futures courtesy of Trading Economics
Earlier today I reported US Natural Gas Price Near 14-Year Peak, EU Hits New Record
The price of natural gas has been climbing for most of the month. This will translate to higher electrical costs in the CPI report for August.
How bad the electrical component feels will vary widely city by city.
Given the price of gasoline has mostly stabilized for August, but electricity hasn’t and rent likely hasn’t, don’t expect another “no inflation” reading in the next CPI report.
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The US can consider itself so lucky!
Electricity prices in Central Europe have doubled.
Which is still a steal, compared to natural gas prices that have quadrupled or quintupled, starting October:
1 therm for about $6.60
By definition: van·guard
[ˈvanˌɡärd]
NOUN
a group of people leading the way in new developments or ideas:
“the experimental spirit of the modernist vanguard”
a position at the forefront of new developments or ideas:
“the prototype was in the vanguard of technical development”
synonyms:
forefront · van · advance guard · avant-garde · spearhead · front · [more]
And a very Ironically named individual: https://www.thebalance.com/how-and-why-john-bogle-started-vanguard-2466413…Missing 1 G, Boggle
NO MORE discussion of blackheart, et al.?
The former has VERY MURKY ownership, and ‘Owns’ a sizable portion of all ‘The Children’.
Adds new meaning. “It’s For the Children”.
Missing a G? Not a problem. We got 5G on deck.
This is not false news. I was paying on average $60/mo for power. It now lingers between $90-100. We don’t really use air conditioning.
I’m in TX and don’t see what they are saying in this area. It has been hot as hell with temps close to or above 100 since May. My bill last month was higher than last year at this time but used 14% more. Price for KWH reflects a 6% increase. I wonder if they are cherry picking rates from people who use those plans that are tied to the baseline costs of energy. Cheap sometimes, and sometimes they get burned.
You have a point. Our electric rates have always been lower than the national level because a lot of it sourced from hydroelectric dams in our area. Now they are tacking the “Green energy” bullshit on (which oddly enough doesn’t include hydro) and it has been ticking up.
Plant is about 5 miles as the crow flies from here. Coal fired. We have never lost power for more than a coupe hours except when some older lady ran off the road up the street and whacked a pole shearing it off at the base. Took about 6 hours to get it back on.
Even during the snow thing here a year or so ago when Texas was screwed due the nat gas freezing up for gas turbines generators, ole coal burner kept it warm and toasty
I’ve been more conscious about unplugging appliances and turning off lights.
I’m on a co-op in west central Florida. My bill Aug/21 ($0.132 per kwh) vs Aug/22 ($0.148) is up about 12%.
My last 2 electric bills have been the highest bills in 18 years of tracking them and were about 30% higher than my 5-yr average for the same billing period. It has been hotter than normal here this summer, so I expected higher bills.
WEPH jingle:
You vil be cold in the dark and like it, serf.
I started paying the Xcel bill six months ago at $135 a month, last one was $250. Groceries have probably doubled. Eating out is near impossible.
I live in NC and we get our electric from nuclear. I haven’t noticed any difference between this year or the previous several years I’ve lived here. Maybe it’s just me though.
I should probably mention I’m in a co-op.
Much of our power is hydro (TVA) produced, consequently the surge so far has been muted. I don’t expect that to continue. We are also in a co-op.
Funny how municipalities were subsidizing gas appliances not so long ago as a cheap alternative. I guess it sold quite a few Chinese dryers and therefore can be claimed a succesful venture.
1000 kWh a month, isn’t that a whole lot??? Maybe with a/c on in TX, but I don’t think many households even come close. Or do they have 5 TVs running simultaneously? I think we use 250-300 per month.
I have wondered about that. I’ve read the breakdown, state by state, of average residential monthly kwh usage. It is surprising low. Well under 1000 kwh. Our house in WNC is around 2200 sq ft, and 1000 kwh per month is at the low end for just the two of us. Heat pump at 75 in summer and 67 in the winter.
Don’t see how anyone can run a house on 250-300 kwh a month.