Peak Oil is You
Donate Bitcoins ;-) or Paypal :-)
Page added on April 17, 2014
Electricity Prices Surge to Record
The average price for a kilowatthour (KWH) of electricity hit a March record of 13.5 cents, according data released yesterday by the Bureau of Labor Statistics. That was up about 5.5 percent from 12.8 cents per KWH in March 2013.
The relative price of electricity in the United States tends to rise in spring, peak in summer, and decline in fall. Last year, after the price of a KWH averaged 12.8 cents in March, it rose to an all-time high of 13.7 cents in June, July, August and September.
If the prevailing trend holds, the average price of a KWH would hit a new record this summer.
The BLS’s seasonally adjusted electricity price index rose to 209.341 this March, the highest it has ever been, up 10.537 points—or 5.3 percent–from 198.804 in March 2013.
In its press release on the Consumer Price Index, BLS noted that the overall energy index declined in March, driven by declining gasoline and fuel oil indexes, despite increases in natural gas and electricity.
”The energy index fell 0.1 percent in March after a 0.5 percent decline in February,” said BLS. “The gasoline index declined 1.7 percent in March, the same decline as in February. (Before seasonal adjustment, gasoline prices rose 5.1 percent in March).
“The fuel oil index also declined, falling 2.9 percent after rising 4.1 percent the previous month,” said BLS. “In contrast, the index for natural gas rose sharply, increasing 7.5 percent, its largest one-month increase since October 2005. It has increased 15.3 percent over the last three months.
“The electricity index also increased, rising 1.1 percent,” said BLS. ”Over the last 12 months, the energy index has increased 0.4 percent, with the natural gas index rising 16.4 percent, the electricity index increasing 5.3 percent, and the fuel oil index advancing 2.1 percent. These increases more than offset a 4.7 percent decline in the gasoline index.”
Historically, rising electricity prices have not been inevitable in the United States. The BLS’s annual electricity price index—which goes back a century—shows that electricity prices generally declined in the United States between 1913 and the end of World War II. They then held relatively steady for about two decades before beginning to escalate in the late 1960s.
12 Comments on "Electricity Prices Surge to Record"
ghung on Thu, 17th Apr 2014 7:35 pm
“….electricity prices generally declined in the United States between 1913 and the end of World War II. They then held relatively steady for about two decades before beginning to escalate in the late 1960s.”
So what happened? The 1960’s was when all of those ‘too-cheap-to-meter’ fission plants began coming on line. Demand increased…. oh, wait! US oil production peaked, and the mean ol’ EPA started meddling in the free energy markets…
J-Gav on Thu, 17th Apr 2014 9:01 pm
We’ve got this happening in Europe too. In France, for example, they’ve just (‘they’ being no less than the Conseil d’Etat) have just decided that a – get this! -RETROACTIVE price hike is in order. Only the beginning, folks.
Northwest Resident on Thu, 17th Apr 2014 9:25 pm
“RETROACTIVE price hike is in order”
Looks like it is time to break out the guillotines again. Good times are here again. Se la vi!
GregT on Thu, 17th Apr 2014 10:37 pm
Exponential growth vs a finite environment, with finite resources. Like J-Gav said above, this is only the beginning.
Kenz300 on Thu, 17th Apr 2014 11:59 pm
The price of fossil fuels and nuclear energy keeps rising every year and they are doing environmental damage.
The price of wind and solar keeps dropping every year.
Once wind or solar are installed there are no monthly increases for fuel costs like with fossil fuels.
We Could Power All 50 States With Wind, Solar and Hydro Washington’s Blog
http://www.washingtonsblog.com/2014/03/solar-wind-mix-baseload.html
Makati1 on Fri, 18th Apr 2014 1:48 am
For all of you US sufferers… Electric here in Manila is about $ 0.29 /KWh. and varies from month to month as there are several components of the price involved and each can change independent of the others. But, as mentioned above, it is only beginning. I see $1+/KWh in the not too distant future everywhere. It is one means of cutting demand.
rockman on Fri, 18th Apr 2014 12:45 pm
“…beginning to escalate in the late 1960s.” NG prices also began escalating during this time. By the time I started with Mobil in 1975 there was a feeding frenzy in the offshore GOM chasing NG. We developed a new seismic interpretation technic specifically for NG in response to higher prices. Chasing such “bright spots” led to success rates several times higher.
Boat on Fri, 18th Apr 2014 1:00 pm
Efficiency is still the low hanging fruit. Some estimates are as high as 40% in waste in the US.
Davey on Fri, 18th Apr 2014 2:07 pm
Boat maybe lifestyles activity but the investment in energy efficiency is approaching diminishing returns as per what I am seeing
Boat on Fri, 18th Apr 2014 3:07 pm
Davey
As you can see in the chart some US states do much better than others and isn’t all about geography.
http://www.eia.gov/state/rankings/?sid=US
Davey on Fri, 18th Apr 2014 3:54 pm
Boat I think the greatest efficiencies would start with a transition to a post American dream lifestyles. This will make the biggest dent and represents the greatest fruit to be plucked
Kenz300 on Fri, 18th Apr 2014 7:03 pm
After Fukishima and the shut down of 50 nuclear reactors in Japan the people of Japan were able to reduce their electricity consumption dramatically.
LED light bulbs use 75% less energy. Just imagine how much energy would be saved if old incandescence were all switched out around the world.
Save energy = save money……….