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US Electricity Prices in 2017 and the Impact on Utilities

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US electricity prices

According to the EIA (U.S. Energy Information Administration), retail electricity prices were $0.11 per kilowatt-hour in 1Q17, which was 1.7% higher than 1Q16. The maximum rise in electricity prices was in the residential sector. Prices in that sector rose nearly 2.5% compared to 1Q16.

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

EIA electricity prices

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Electricity prices expected to rise

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

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

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