The latest inflation data confirms that electricity price inflation is outpacing the broader economy. Today’s Bureau of Labor Statistics report shows that in August electricity prices were up 6.2 percent year over year, compared with overall CPI at 2.9 percent.  

In a statement, Paul Cicio, Chair of the Electricity Transmission Competition Coalition, said: “These numbers are the latest indication that electricity prices are out of control. Electricity prices are driven by escalating transmission costs due to FERC’s failure to enforce Order 1000 and require regionally planned transmission projects to be competitively bid to reduce costs to consumers. Without market competition, incumbent monopoly utilities do not have a reason to reduce costs”.   

Incumbent monopoly electric utilities receive high guaranteed incentives that can range from 11-12 percent and when finance charges are added, the final cost of the transmission project can be 7-8 times higher than the original cost. All of those costs are automatically passed onto the consumer rates for 40 years or more.      

 FERC has the power to act and bring prices down, and they must enforce Order 1000 and close the loophole. It’s time to break the transmission monopoly and lower Americans’ energy bills.