FOR IMMEDIATE RELEASE
December 12, 2023
Latest CPI Release: Monthly Electricity Price Inflation Increases 1.4% vs .1% for CPI Due to Accelerating Transmission Costs – FERC Must Act
WASHINGTON – Today’s inflation data released by the U.S. Bureau of Labor Statistics shows that electricity prices continue to climb despite decreases in commodity prices over the last 12 months. The monthly electricity price index rose by 1.4% compared to 0.1% for the CPI, while the 12-month price of electricity increased by 3.4% compared to 3.1% for the CPI. Energy commodity prices fell once again with a monthly decline of 5.8%, contributing to a 9.8% drop on a 12-month basis. Inflation may be coming down across the economy, but it remains high for electricity.
In a statement, Paul Cicio, Chair of the Electricity Transmission Competition Coalition, said: “Electricity price inflation is accelerating as a result of transmission investment that does not face competition, as illustrated below using PJM. The cost of electricity has remained high throughout 2023 despite relatively flat electricity demand nationwide. To make matters worse, FERC’s Transmission NOPR backs away from competition rather than embracing it. We urge FERC to fight electricity price inflation and enforce Order 1000.”
In the PJM Regional Transmission Organization, a lack of competition has pushed up the cost of transmission. The cost of transmission as a percentage of the wholesale electricity price has risen from 9% in 2013 to 28% in 2023.
Competitively bid electricity transmission projects have been shown to reduce costs to consumers by an average of 40 percent according to The Brattle Group.
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 92 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.