The good news is that, from March to June of this year, the California average residential electricity rate has DROPPED some compared to the other states — down to “only” 30.6% higher than the national average (from 33.7% higher in March).
But the California rates have SOARED in the two other major sectors. Commercial rates went from 27.0% higher than the national average in March to 53.8% higher in June. Industrial rates rose from 54.2% higher to 72.5% higher.
http://www.eia.gov/electricity/monthly/epm_table_grapher.cfm?t=epmt_5_06_a
Further major “cap and trade” California electricity rate increases are expected in the next 12 months. And — for my regional readers — be advised that SDG&E and SoCal Edison are significantly higher than the CA statewide average.
BOTTOM LINE: Just when you think California can’t be a more unattractive place for businesses to locate, our Golden State exceeds your expectations. BIG-time.
Comments 10
Glass half-full or half-empty?
According to the same chart, the cost of electricity in California from 2013 to 2014 DECREASED by more than 3% for residential customers, more than 1% for commercial customers and more than 1% overall.
Author
HQ, I’m more interested in how we compare with OTHER states — our economic competitors. THAT’s what companies look at when comparing locations. Plus, I’m measuring a recent 3 month timeframe (March-June, 2014) — you are comparing with the previous year.
Whatever way you measure it, our California rates are much higher than the national average. And our SDG&E rates are higher than the California average.
BTW, comparing us with our #1 poaching state (Texas), our CA commercial and industrial electricity rates are about DOUBLE the Texas rates — not a plus for our state’s business climate.
Richard,
Besides taking a “glass is half-empty” approach to the data, you also missed one very important point: Californians use much less energy than our counterparts in Texas. In fact, since the average Texan uses more than double (234%) the energy that the average Californian uses, the average Texan has a significantly higher monthly utility bill than does the average Californian.
http://www.eia.gov/state/rankings/?sid=US&CFID=17086833&CFTOKEN=52778cc544325c29-C31FBEFE-237D-DA68-246E693FCBE004FF&jsessionid=84304957b0ebde299a50582e613d2b6d2b76
Our office bill was up nearly 80% this summer over last…..way to go MOONBEAM….just when we thought it could not be any tougher to compete, you and your green cronies remove viable sources of electricity all over the state for green expensive energy!
What this shows is that terrible energy policies are boosting the costs of power – regardless of how inequitably the CPUC chooses to distribute those costs to. Additionally, the EIA only tracks rates for electric consumption – one of about a dozen line items on your monthly power bill. The rest of those are taxes, fees, and infrastructure upgrade pass-through costs. Those are all substantially higher in CA (the costs of those giant transmission projects to solar farms in the Mohave cost $$$ – and those costs are passed to consumers) than in other states not named New York. Texans may consume more energy because (1) they can, and (2) that is a state where people run the a/c 24/7 for 6 months straight, but the actual bill is not nearly as much higher as the discrepancy in usage would suggest.
Maryanne,
According to the chart provided by Richard Rider, the per kilowatt-hour cost of electricity in California is actually lower this summer than it was last summer. Your electricity bill is higher simply because it has been much hotter this summer than it was last summer and you are using more kilowatt-hours.
Author
HQ and Marianne — the chart I showed is the California AVERAGE. I don’t know what the SDG&E rates were, or how much they’ve gone up or down on average. A lot depends on how much one uses for electricity. If you had a below average bill, it surely went up (the low usage subsidy was reduced). If you have a HIGH usage history, chances are one’s rates went down.
Author
HQ, your reference that the “average Texan” uses 234% more electricity fails for two important reasons:
1. Your reference gives the PER CAPITA STATE USAGE. That includes all industry and commercial usage, in addition to residential usage. Given that Texas industry is booming while ours is slipping away (has been for years), it’s quite likely that much of that differential is the business usage. Not only does Texas have proportionately more businesses, but certainly more HEAVY industry — energy gluttons.
2. Even more important, you’ve made what is sadly a common math error. Texas is not 234% higher — it’s 134% higher.
Texas 471 KwH
Calif 201 KwH
To get the proper percentage increase, subtract 201 from 471, and you’ll get 270. Divide 270 by 201, and you’ll get 1.34, which converts to 134%.
Few people can handle percentages over 100%. Indeed, I hesitate to even use such higher percentages, given that many people don’t understand the numbers.
I SHOULD take this opportunity to impugn your math prowess, but I’ve seen this error FAR too many times to consider it a barometer of a person’s intelligence. Innumeracy is rife in America, and it knows no ideological bounds.
Richard,
Thanks for ATTEMPTING to impugn my math prowess, but my math skills are just fine. Re-read what I wrote:
“The average Texan uses more than double (234%) the energy that the average Californian uses.”
That sentence does not say 234% higher. It says 234% of, a mathematically correct statement.
Author
I learn something every day, HQ. My apologies. You’ve come up with a TERRIFIC way to make an increase appear larger than it is — and do it mathematically correct. I’m in awe.
I don’t think I’ve ever seen that method of making the payment of 100% more look like 200%. Since even I imputed “more” into your assertion, I presume that’s a common inference made by readers.
I’ll have to remember that when next I want to exaggerate the impact of my figures. Well played!