WASHINGTON – The latest inflation data released by the U.S. Bureau of Labor Statistics confirms the historic rise in long-run electricity prices, which far outpaces the overall consumer price index. The December CPI measured annualized electricity services inflation at 14.3%, in contrast to overall CPI which increased by 6.5% on a 12-month basis. Month to month, while the overall CPI decreased by 0.1%, electricity prices increased by 1%. The soaring cost of electricity is a large reason why 1/6 of U.S. households are behind on their energy bills.

In a statement, Paul Cicio, Chair of the Electricity Transmission Competition Coalition, said: “A consistent trend of the past year has been that electricity price inflation far exceeds the rest of the CPI, increasing costs for households and businesses.”

“We hope that Acting FERC Chair Willie Phillips will take this opportunity to support transmission competition, which is endorsed by the Federal Trade Commission, and the Department of Justice. All transmission projects that are 100 kV or larger should be competitively bid to reduce costs to the consumer.”

Competitively bid electricity transmission projects have been shown to reduce costs to consumers by up to 40 percent according to The Brattle Group.[1] 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.[2] The electric utility industry is opposed to competition and supports the FERC NOPR.

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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 86 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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[1] 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

[2] NET-ZERO AMERICA: Potential Pathways, Infrastructure, and Impacts, Princeton University, https://netzeroamerica.princeton.edu/?explorer=year&state=national&table=2020&limit=200