Electricity retail prices in the U.S. 1990-2022

The retail price for electricity in the United States stood at an average of 12.5 U.S. dollar cents per kilowatt-hour in 2022. This is the highest figure reported in the indicated period and represents a year-over-year growth of over 12 percent. Nevertheless, the U.S. still has one of the lowest electricity prices worldwide. As a major producer of primary energy, respective energy prices are lower than in countries that are more reliant on imports or impose higher taxes.

Prices development influenced by consumer sector

When Thomas Edison developed a system to generate and distribute electricity, he would have known little about the dramatic impact his invention would create on civilization. In 21^st Century America, electric power is omnipresent in people’s lives, as electricity powers factories, shops, homes, and even cars. On average, retail electricity prices in the U.S. grew by over 60 percent since the beginning of the century. However, not every sector has been affected equally by the said price increase. U.S. electricity prices for residential customers saw a much steeper increase in the period, while industrial prices remained relatively constant in the past decade.

Reasons for increases in electricity prices

The rising prices are justified by the costs of power production and power grid maintenance. Although the production cost of electricity generated from coal, natural gas, and nuclear sources remained relatively stable, the integration of renewable energy sources, investments in smart grid technologies, growing peak demand, power blackouts caused by natural disasters, and the global energy crisis in 2022 continued to trouble the electric utility industry in recent years. Average U.S. electricity prices per state can also vary widely, with Hawaii residents experiencing some of the highest rates in the country.