Slide 24 of 30
- The nominal price (not inflation-adjusted) of electricity rose at an average annual rate of 5.3 percent during the past 25 years. In contrast, the real price (inflation-adjusted) rose at a rate of 0.3 percent.
- Electricity prices (real cents per kilowatthour) have followed two broad trends: (1) growth throughout the 1970's and into the early 1980's; and (2) a decline ( real dollars) since about 1982. Increased competition in the electric power industry has created downward pressures on prices.
- The retail price of electricity, in real terms, rose 53 percent from a low 5.7 cents per kilowatthour (kWh) in 1972 to 8.7 cents per kWh in 1982. Also, during that period the nominal price rose even more dramatically, 1.9 to 6.1 cents per kWh, a staggering 220 percent, tripling the price.
- A rise in fossil fuel prices between 1972 and 1982 strongly influenced the price of electricity.
- The nominal price continued to rise after 1982, but at a much more gradual rate. Meanwhile the real price showed a steady decline of about 30 percent by 1996.
Source: Energy Information Administration, Annual Energy Review 1997, DOE/EIA-0384(97). (Washington, DC, July 1998), Table 8.13.
