FOR IMMEDIATE RELEASE
May 15, 2024
Electricity Price Inflation Outpaces CPI by 50%
FERC Transmission Planning Rule Fails to Provide Transmission Cost Relief to Consumers Nationwide
WASHINGTON – The annualized 12 month electricity inflation price index increased 5.1% and continues to outpace the Consumer Price Index by 50%, according to the Bureau of Labor Statistics. The overall CPI index increased by 3.4%. The price of electricity continues to increase due to accelerating transmission costs that are not subject to competition. Less than 10% of all transmission projects are competitively bid.
In a statement, Paul Cicio, Chair of the Electricity Transmission Competition Coalition, said: “The inflation data released today confirms what we have been saying to FERC for two years – electricity transmission costs are escalating, and competitive bidding of large transmission projects is the only way to reduce costs for consumers. The pace of electricity inflation will continue to increase with Order 1920. The rule provided FERC with an opportunity to advance transmission competition and protect consumers from higher electricity costs and they did not. Hundreds of billions of dollars of consumer costs could have been avoided.”
Competitively bid electricity transmission projects have been shown to reduce costs to consumers by up to 40% according to The Brattle Group. A Princeton University study scenario concluded that the U.S. would need to spend $2.1 trillion on transmission by 2050, all of which will be passed onto homeowners, farmers and business ratepayers.
Read more about the benefits of transmission competition in ETCC’s comprehensive report.
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 94 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.
Press Contact:
Julian Graham
jgraham@signaldc.com
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