It may come as little surprise or comfort to American consumers that a recent survey found the national average price of electricity in the United States rose by 5.2% during the period of April 2004 to April 2005.

The annual survey by an independent consulting company, NUS Consulting of Park Ridge, New Jersey, U.S., found the average price of electricity in the United States was 7.95 cents per kilowatt-hour (kWh) in April 2005 compared with 7.56 cents per kWh in April 2004. The survey samples 24 of the largest investor-owned utility companies in the country using an industrial model of monthly usage totaling 450,000 kWh with a monthly demand of 1000 kW. The survey model also assumes an operating power factor of 85% and customer-owned transformation equipment.

The survey found customers in New York, New Jersey and California pay some of the highest electric prices in the country. The top five surveyed utilities in terms of price included Consolidated Edison (New York) at 14.84 cents/kWh, Niagara Mohawk (New York) at 11.97 cents/kWh, Southern California Edison at 11.45 cents/kWh, Pacific Gas & Electric (California) at 11.31 cents/kWh, and Public Service Electric & Gas (New Jersey) at 9.90 cents/kWh.

The largest price escalation over the past year occurred in Maryland as Baltimore Gas & Electric increased its electric pricing by a whopping 33.7%. Other utilities having double-digit increases included Con Edison at 15.0%, Reliant Energy (Texas) at 13.3% and Texas Utilities at 12.0%.

The survey found the lowest priced utilities included Ohio Power at 4.70 cents/kWh, Dominion Power (Virginia) at 5.18 cents/kWh, Duke Power (North Carolina) at 5.28 cents/kWh, Alabama Power at 5.37 cents/kWh and Ameren UE (Missouri) at 5.46 cents/kWh.

Interestingly, the five highest priced utilities are considered deregulated electricity markets. California re-regulated its electricity market in March of 2002 retroactive to September 2001; however, customers buying electricity on the open market prior to that time could still purchase competitive supply after March 2002. All four utility companies reporting double-digit increases have also opened their electricity markets to retail competition. Four of the five lowest cost utilities currently have not deregulated their electricity markets with the exception being Ohio Power.

"As world energy prices continue to rise, the U.S. electric industry will reflect this growing trend," said Richard Soultanian, co-president of the NUS Consulting Group. "This year's increase of 5.2% is one of the highest recorded for the United States and there is little sign that future electricity prices will abate." He concluded by saying, "As much of the electricity in the United States is generated using natural gas and this commodity is so closely tied to world oil prices, electric rates are bound to continue to climb ever higher. Additionally, we currently have indications that electricity prices over the next twelve months should increase further, perhaps to historic levels."