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.
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.