FOR IMMEDIATE RELEASE
July 12, 2023
Electricity Price Inflation is 80% Higher Than the Consumer Price Index – FERC Must Act and Require Electricity Transmission Competition
Consumers Urge FERC to Change its Transmission NOPR to Ensure that All FERC Jurisdictional Transmission Projects are Competitively Bid to Lower Electricity Costs and Inflation for Households and Businesses.
WASHINGTON – Inflation data released by the U.S. Bureau of Labor Statistics today confirms the long-term trend of electricity inflation exceeding the Consumer Price Index (CPI) benchmark and other commodities. The June CPI measured monthly electricity services inflation at 0.9%, in contrast to the overall CPI of 0.2%. The annualized increase in electricity price inflation was 5.4% as compared to 3% for the CPI. Persistent increases in electricity prices have saddled consumers with higher monthly utility costs adding to the broader economic strains facing American households and businesses.
In a statement, Paul Cicio, Chair of the Electricity Transmission Competition Coalition, said: “Persistent and accelerating electricity price inflation due to increasing transmission costs is a serious issue nationwide. The only way to avoid higher electricity prices is for the FERC Transmission NOPR to require competition for transmission projects that are 100kV and greater. We urge FERC to support consumers and not electric utility monopolies who oppose competition.”
Additional data from the Energy Information Administration showed that residential electricity prices increased by 5 percent last year as residential spending on electricity increased to record levels. According to The Brattle Group, competitively bid electricity transmission projects have been shown to reduce costs to consumers by up to 40 percent. The U.S. will need to spend $2.1 trillion on transmission to reach its net-zero goals by 2050 according to Princeton University which means that electricity transmission competition could save as much as $840 billion for Americans.
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 all 50 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.
 U.S. Energy Information Administration, U.S. residential electricity bills increased 5% in 2022, after adjusting for inflation, https://www.eia.gov/todayinenergy/detail.php?id=56660&src=email
 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
 NET-ZERO AMERICA: Potential Pathways, Infrastructure, and Impacts, Princeton University, https://netzeroamerica.princeton.edu/?explorer=year&state=national&table=2020&limit=200