EIA forecasts 3 percent increase in consumer spending on electricity this summer
Average household electricity expenditures for this summer are expected to increase by 3 percent over last summer, according to the U.S. Energy Information Administration’s (EIA) Short-Term Energy Outlook.
EIA forecasts that the typical U.S. household will spend an average of $426 on electricity between June and August.
Spending is expected to increase, EIA said, due to higher retail electricity prices and slightly higher electricity consumption to meet increased demand for cooling.
Based on predictions from the National Oceanic and Atmospheric Administration (NOAA), EIA expects 2 percent more cooling degree days, which indicate cooling demand, this summer than there were in summer of 2017. The projected number of cooling degree days is approximately 1 percent fewer than the average of the previous 10 summers.
The average U.S. residential electricity customer is expected to use approximately one percent more electricity this summer than last summer. Summer-over-summer changes in average household electricity usage range from a 6 percent decrease in the Pacific states to a 5 percent increase in the New England states due to differences in temperatures between regions.
EIA predicts that U.S. residential retail electricity prices will average 13.5 cents per kilowatt-hour (kWh) between June and August, approximately 2 percent higher than last summer. Prices are projected to increase in all regions of the country.
Prices are expected to increase primarily due to higher generation fuel costs, especially for natural gas, as well as increased investments by utilities in transmission infrastructure.
Natural gas is expected to provide 37 percent of total U.S. electricity generation this summer, making it the primary electricity generation fuel source. In summer 2017, natural gas accounted for 35 percent of electricity generation. Coal is expected to average 29 percent as compared to 31 percent last summer.
