Every day, Americans depend on electricity to power our lives – and every month, we pay for that power via an electric bill. Today, those electric bills represent the largest utility bill for everyday Americans, accounting for over 7% of monthly housing expenditures.
However, not all of us pay the same amount for that power. In fact, there’s a pretty wide disparity.
The U.S. Chamber of Commerce’s Global Energy Institute recently released its annual state-by-state comparison of electricity prices. In a blog post, GEI Senior Director for Policy Heath Knakmuhs detailed some of the top-line findings as well as some of the variation across states:
So why have homeowners and business leaders in some states seen their electricity prices dip while others have watched them surge? Knakmuhs explains:
There’s reason to believe that – even in some of the nation’s most expensive states – electricity prices may come down across the country this year as a result of tax reform legislation Congress passed at the end of last year. That’s because utilities normally recover their costs of doing business in the rates that they charge customers, both big and small. The Tax Cuts and Jobs Act lowered corporate tax rates from 35% to 21%, which lowered utilities’ future costs. Those reduced costs are expected to translate into lower rates for customers, which could ease some of rate increases we witnessed this past year.
“The tax cuts are highly likely to have positive impacts on state rates and the overall national average,” Knakmuhs wrote. “Here’s hoping that next year sees more state level rate decreases. That would be good for those states, and good for America’s global competitiveness.”
How does your state stack up? Click here to check out the state-by-state electricity price map.
About the authors
J.D. Harrison is the former Executive Director for Strategic Communications at the U.S. Chamber of Commerce.