FOR IMMEDIATE RELEASE
September 13, 2023
12-Month Electricity Inflation Rate Running 6.3% Ahead of CPI Energy Commodities - FERC Must Act
Consumers Urge FERC to Support-Not Impede Electricity Transmission Competition to Lower Electricity Costs and Fight Runaway Inflation.
WASHINGTON – The latest set of inflation data released by the U.S. Bureau of Labor Statistics confirmed that electricity price inflation continues to hurt households and businesses, far outpacing other energy commodities. The August CPI measured monthly electricity services inflation at an increase of .2%. Over the last year, electricity services inflation rose 2.1%, compared to energy commodities which fell -4.2%. On a 12-month basis, electricity inflation is 6.3% higher than CPI energy commodities.
In a statement, Paul Cicio, Chair of the Electricity Transmission Competition Coalition, said: “Electricity inflation is a persistent problem and is being driven by the accelerating cost of electricity transmission projects that are not being competitively bid to reduce costs. The consistent increase in the cost of electricity is forcing homeowners to spend more on their monthly utility bills and reduces the competitiveness of manufacturing. FERC has failed to enforce Order 1000, a decade old rule that was to supposed usher in an era of transmission competition. Instead, only 3 percent of all transmission projects are competitively bid.”
The U.S. will need to spend an estimated $2.1 trillion according to Princeton University to achieve its net-zero goals; a large capital investment that could be made cheaper with electricity transmission competition. Competitively bid electricity transmission projects have been shown to reduce costs to consumers by up to 40 percent according to The Brattle Group. Competition would therefore save the U.S. over $840 billion.
About the Electricity Transmission Competition Coalition
The Electricity Transmission Competition Coalition (ETCC) is a broad-based, nation-wide coalition committed to increasing competition in America’s electricity transmission infrastructure. We advocate for common-sense policies and solutions that result in competitively priced transmission projects, which reduce energy costs for all ratepayers – from large manufacturers to residential consumers. The ETCC represents a diverse group of more than 80 companies and organizations from 48 states, including manufacturing groups, retail electric consumers, state consumer advocates, public power representatives, think tanks, and non-incumbent transmission developers.
For more information, visit: www.electricitytransmissioncompetitioncoalition.org.
 NET-ZERO AMERICA: Potential Pathways, Infrastructure, and Impacts, Princeton University, https://netzeroamerica.princeton.edu/?explorer=year&state=national&table=2020&limit=200
 Brattle Group: Cost Savings Offered by Competition in Electric Transmission, https://www.brattle.com/wp-content/uploads/2021/05/16726_cost_savings_offered_by_competition_in_electric_transmission.pdf