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• municipalization • resource procurement prudence • rising electricity costs • state policy research • state restructuring and regulatory policy

• rising electricity costs resources electric company members only • EEI committees and other resources

Typical Bills Analyze electricity costs around the country with EEI's newest Typical Bills—based on Summer 2006 rates.

Rising Electricity Costs

Rising energy and electricity prices have been in the news a lot lately. More than 100 state regulatory actions are planned or in progress to address rising electricity costs.

Even with recent price increases, the growth rate for electricity prices remains comparable to, and even lower than, other important consumer goods. The national average price for electricity today is less than what it was in 1980, adjusted for inflation.

Learn what's causing electricity costs to rise and what electric utilities are doing to help control prices.

Resources

• Members-Only Resources 
  EEI provides many technical resources for electric utilities dealing with rate issues.
• Rising Utility Construction Costs: Sources and Impacts
  This report, prepared by The Brattle Group, found that construction cost increases, whose sources are external to the utility industry, will affect industry investment planning and present new challenges for regulators.
• Why Are Electricity Prices Increasing? An Industry-Wide Perspective
  This report, prepared by The Brattle Group for the Edison Foundation, examines the factors underlying recent increases in electricity prices and the potential impacts of these factors on the electric industry’s financial condition. The Brattle Report.
  • Issue Papers
    EEI-prepared summaries of key points from Why Are Electricity Prices Increasing? An Industry-Wide Perspective.
• Behind the Rise in Prices: Electricity Price Increases Are Occurring Across the Country, Among All Types of Electricity Providers. Why?
  Reprinted from the July/August 2006 Electric Perspectives, this article provides a summary of The Brattle Group report.
• Rising Electricity Costs: A Challenge For Consumers, Regulators, and Utilities
  Learn more about today's electric utility rate environment in this EEI report.
• Straight Answers About Rising Electricity Prices
  This brochure uses a Q&A format to answer questions about today's rising electricity prices.
• Electricity 101
  This presentation provides an overview of the electric power industry.
• Retail Electricity Pricing and Rate Design in Evolving Markets
  Prepared by Christensen Associates Energy Consulting, LLC
  Reviews the critical role that efficient rate design needs to play in today’s electricity markets, and suggests practical strategies for overcoming historical barriers to implementing such rates.
• Assessing Rate Trends of U.S. Electric Utilities
  Prepared by Pacific Economics Group, LLC, January 2006, this report analyzes factors affecting electricity rates, and provides a national perspective on the issue of electricity rate increases.
• Deciding on "Smart" Meters: The Technology Implications of Section 1252 of the Energy Policy Act of 2005 
  Prepared by Plexus Research, Inc. August, 2006.  This report provides practical guidance on how to evaluate the cost-effectiveness of advanced metering infrastructures.  It reflects an assumption that careful planning and implementation is the key to regulatory support for cost recovery.
• Responding to EPAct 2005: Looking at Smart Meters for Electricity, Time-based Rate Structures, and Net Metering
  Prepared by National Economic Research Associates, May 2006. PURPA, as amended by the EPAct 2005, directs state regulators to take a new look at time-based rates, interruptible rates, standby or backup rates, and net metering.  This report presents the economic principles and policy issues that a Commission needs to consider when evaluating rate options, and provides guidance to regulators on whether to adopt the proposed standards.

© 2008 Edison Electric Institute