How Electricity Prices Could Affect Utilities

According to the EIA (U.S. Energy Information Administration), retail electricity prices were $0.10 per kilowatt-hour in 1Q17, 1.7% higher compared to 1Q16. The residential sector saw the most significant price increase at 2.5%.

Higher electricity prices during the quarter might have a positive impact on utilities’ (XLU) top lines in 1Q17.

The EIA expects electricity prices to rise 2.6% in 2017 compared to last year. Prices will most likely rise due to an increase in natural gas (UNG) prices.

To learn more about US electricity prices, read A Look at US Electricity Prices and the Factors Impacting Them.