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Will US Retail Electricity Prices Climb in 2017?

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Aug. 24 2016, Updated 9:04 a.m. ET

US electricity prices

According to the EIA (Energy Information Administration), residential electricity prices in the US averaged 13 cents per kilowatt-hour in July 2016. For the month, the highest electricity price was 17.9 cents per kilowatt-hour in New England, and the lowest was 10.7 cents per kilowatt-hour in the East South Central area.

According to the EIA forecast, residential electricity prices are expected to fall by 0.3% in 2016 and then increase by 3% in 2017.

Favorable weather and expansion of the customer base provided a moderately offsetting effect on the low price scenario so far in 2016. In 2017, the expected electricity price rise is likely to have a positive impact on utilities’ (XLU) (IDU) (FXU) revenues.

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