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THE STATE OF THE INDUSTRY - JULY 2024, by Sid Crouch, GTTSi Chief Technical Consultant Our electric companies use similar methods to generate electricity, but each models their services based on the unique needs of their customer base. Where you live determines your electricity rate. Whether your state is regulated or deregulated, your electricity costs are affected by many variables including fuel prices, availability, usage patterns, regulatory policy, and infrastructure investment costs. In addition, electric companies typically cannot recover costs when they are incurred (e.g., after a hurricane, tornado, flooding, ice storm). Instead, they are required to present their case to their respective regulatory agency. Usually, the agency will require them to spread out these costs over the physical life of the investment, sometimes as long as 70 years (see NV Energy story). While food inflation has eased over the past several months, electric rates have not, rising 5% from last year and about 30% since 2021. Much of this increase can be attributed to investments in our aging infrastructure – modernizing the grid to accommodate transition to renewables, replacing equipment to handle extreme weather, and preparing for the increase in generation capacity anticipated for AI. According to the Edison Electric Institute, total spending by investor-owned electric utilities from 2022 through 2024 is projected to jump by 11% to $167 billion (about $510 per person in the US). The average cost of electricity is 16.68 ¢/kw-hr. Hawaii has the highest at 45.25 ¢/kw-hr. North Dakota has the lowest at 10.44 ¢/kw-hr. Electricity in the US is still a bargain when compared to Europe where it is 28 ¢/kw-hr (France) to 63.73 ¢/ kw-hr (Italy). I welcome your comments or questions - sid.crouch@gttsi.com #energyindustry #powergeneration #nuclearenergy #nuclearpower #renewableenergy #renewables #electricgrid 

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Sid Crouch

Chief Technical Consultant at GTTSi (Global Technical Training Services, Inc.)

3w

Yes electric rates have increased about 30% since 2021.

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