The latest Electric Power Monthly report from the Energy Information Administration (EIA) shows yet another increase in residential electricity rates for May. This latest increase put rates over 13% higher than they were in January of this year. In May, residential electricity rates across the U.S. were on average 11.96 cents/kWh. To put that in perspective, if we consider that an average household might use 1,000 kWh/month, then that household is now paying $15/month more for their electricity.
Other data from the EIA reports that net generation is up 5.2% from last year with the majority of the increases coming from fossil fuel sources such as coal. In fact, coal-fired generation represented the largest absolute fuel-specific increase in the past year with an 8.9% jump in generation. This represented almost three-quarters of the overall national rise in generation.
The coming months will prove interesting as the price of residential electricity may surpass the high of August 2008, when rates we at 12.06 cents/kWh.