{"id":66712,"date":"2025-05-16T10:23:04","date_gmt":"2025-05-16T17:23:04","guid":{"rendered":"https:\/\/energi.media\/?p=66712"},"modified":"2025-05-16T10:23:04","modified_gmt":"2025-05-16T17:23:04","slug":"u-s-electricity-prices-continue-steady-increase","status":"publish","type":"post","link":"https:\/\/energi.media\/news\/u-s-electricity-prices-continue-steady-increase\/","title":{"rendered":"U.S. electricity prices continue steady increase"},"content":{"rendered":"<p><em>This article was published by the <a href=\"https:\/\/www.eia.gov\/todayinenergy\/detail.php?id=65284\" target=\"_blank\" rel=\"noopener\">US Energy Information Administration<\/a> on May 14, 2025.<\/em><\/p>\n<p><em><strong>By Owen Comstock<\/strong><\/em><\/p>\n<p>Retail electricity prices have increased faster than the rate of inflation since 2022, and we expect them to continue increasing through 2026, based on forecasts in our\u00a0<a href=\"https:\/\/www.eia.gov\/outlooks\/steo\/\"><em>Short-Term Energy Outlook<\/em><\/a>. Parts of the country with relatively high electricity prices may experience greater price increases than those with relatively low electricity prices.<\/p>\n<p data-type=\"indepth\"><img decoding=\"async\" src=\"https:\/\/www.eia.gov\/todayinenergy\/images\/2025.05.14\/main.svg\" alt=\"selected retail energy prices and consumer price index\" \/><\/p>\n<div class=\"source\"><strong>Data source:\u00a0<\/strong>U.S. Energy Information Administration,\u00a0<a href=\"https:\/\/www.eia.gov\/outlooks\/steo\/\"><em>Short-Term Energy Outlook<\/em><\/a>, May 2025<br \/>\n<strong>Data values:\u00a0<\/strong><a href=\"https:\/\/www.eia.gov\/outlooks\/steo\/data\/browser\/#\/?v=8&amp;f=A&amp;s=0&amp;start=2010&amp;end=2026&amp;ctype=linechart&amp;maptype=0&amp;linechart=WTIPUUS\">Energy Prices<\/a><\/div>\n<hr \/>\n<p>Overall, U.S. energy prices rapidly increased from 2020 to 2022 as economic activity recovered after the worst of the pandemic and Russia\u2019s invasion of Ukraine interrupted energy supply chains. Since 2022, nominal prices for many fuels have declined, particularly for those such as gasoline and heating oil that are tied more closely to crude oil prices, which are\u00a0<a href=\"https:\/\/www.eia.gov\/finance\/markets\/crudeoil\/\">affected by international markets<\/a>. Electricity prices, though, have continued a steady increase.<\/p>\n<h2>Regions with already high electricity prices may see larger increases<\/h2>\n<p>Although we expect the nominal U.S. average electricity price to increase by 13 per cent from 2022 to 2025, our forecasts for retail electricity price increases differ across the country. Residential electricity prices in the Pacific, Middle Atlantic, and New England <a href=\"https:\/\/www2.census.gov\/geo\/pdfs\/maps-data\/maps\/reference\/us_regdiv.pdf\">census divisions<\/a>\u2014regions where consumers already pay much more per kilowatthour for electricity\u2014could increase more than the national average. By comparison, residential electricity prices in areas with relatively low electricity prices may not increase as much.<\/p>\n<p><img decoding=\"async\" src=\"https:\/\/www.eia.gov\/todayinenergy\/images\/2025.05.14\/chart2.svg\" alt=\"regional retail residential electricity prices\" \/><\/p>\n<div class=\"source\"><strong>Data source:\u00a0<\/strong>U.S. Energy Information Administration,\u00a0<a href=\"https:\/\/www.eia.gov\/outlooks\/steo\/\"><em>Short-Term Energy Outlook<\/em><\/a>, May 2025<br \/>\n<strong>Data values:\u00a0<\/strong><a href=\"https:\/\/www.eia.gov\/outlooks\/steo\/data\/browser\/#\/?v=21&amp;f=A&amp;s=0&amp;start=2020&amp;end=2026&amp;map=&amp;linechart=~ESRCU_US&amp;maptype=0&amp;ctype=linechart\">U.S. Regional Electricity Prices to Ultimate Customers<\/a><\/div>\n<hr \/>\n<h2>Electricity prices include more than the cost of generating electricity<\/h2>\n<p>Retail electricity prices include the cost of generating, transmitting, and delivering electricity to ultimate customers, as well as taxes and other fees. In recent years, electric utilities have increased capital investment to replace or upgrade aging generation and delivery infrastructure, among other factors. Between 2013 and 2023,\u00a0<a href=\"https:\/\/www.eia.gov\/todayinenergy\/detail.php?id=63064\">electricity prices closely tracked inflation<\/a>, but we expect increases in electricity prices to outpace inflation through 2026.<\/p>\n<p>Utility spending on electricity distribution has surpassed spending on electricity transmission and production, according to\u00a0<a href=\"https:\/\/www.eia.gov\/todayinenergy\/detail.php?id=63724\">our analysis of utilities\u2019 financial reports<\/a>\u00a0to the Federal Energy Regulatory Commission. The generation-related portions of retail electricity typically lag changes in wholesale spot prices of electricity generation fuels such as natural gas and coal depending on the customer contract agreements.<\/p>\n<h2>Electricity expenditures are second only to gasoline<\/h2>\n<p>U.S. consumers spent an average of about $1,760 on electricity expenditures in 2023. Among fuel-related expenditures, electricity expenditures are surpassed only by gasoline, which averaged nearly $2,450 in 2023, according to the most recent data available from the U.S. Bureau of Labor Statistics\u2019\u00a0<a href=\"https:\/\/www.bls.gov\/cex\/tables.htm#topline\">Consumer Expenditure Survey<\/a>. Annual fluctuations in electricity expenditures tend to be more moderate than gasoline prices, which\u00a0<a href=\"https:\/\/www.eia.gov\/energyexplained\/gasoline\/factors-affecting-gasoline-prices.php\">tend to follow changes<\/a>\u00a0in global crude oil prices.<\/p>\n<p><img decoding=\"async\" src=\"https:\/\/www.eia.gov\/todayinenergy\/images\/2025.05.14\/chart3.svg\" alt=\"U.S. consumers average annual expenditures\" \/><\/p>\n<div class=\"source\"><strong>Data source:\u00a0<\/strong>U.S. Bureau of Labor Statistics,\u00a0<a href=\"https:\/\/www.bls.gov\/cex\/\">Consumer Expenditure Survey<\/a><br \/>\n<strong>Data values:\u00a0<\/strong><a href=\"https:\/\/www.bls.gov\/cex\/tables.htm#topline\">Top Line Means Tables<\/a><\/div>\n","protected":false},"excerpt":{"rendered":"<div class=\"mh-excerpt\"><p>This article was published by the US Energy Information Administration on May 14, 2025. By Owen Comstock Retail electricity prices have increased faster than the rate of inflation since 2022, and we expect them to <a class=\"mh-excerpt-more\" href=\"https:\/\/energi.media\/news\/u-s-electricity-prices-continue-steady-increase\/\" title=\"U.S. electricity prices continue steady increase\">[Read more]<\/a><\/p>\n<\/div>","protected":false},"author":6,"featured_media":66713,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"give_campaign_id":0,"footnotes":""},"categories":[1],"tags":[103,528,41,2970,598],"class_list":{"0":"post-66712","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-news","8":"tag-electricity","9":"tag-electrification","10":"tag-energy","11":"tag-featured-eia","12":"tag-us"},"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.5 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>electricity prices - 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