| Electric Sales, Revenue, and Price | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Date of Latest Data: 2007
Report Released: January 2009 Next Release Date: December 2009 Electric Sales, Revenue, and Average Price 2007 In 2007, the average retail price of electricity for all customers increased to 9.13 cents per kilowatthour (kWh), an increase of 2.6 percent over 2006. Five States saw the average price of electricity rise by 10 percent or more from 2006 to 2007. Prices increased in all regions of the country except the West South Central. The larger increases occurred in New England, the East North Central and the South Atlantic. Another 9 States saw increases between 5 and 10 percent between 2006 and 2007. States with restructuring programs such as Maryland and Delaware had portions of their retail electricity price caps lifted in 2006, contributing to significant price hikes. Delaware’s increase in electricity rates for residential customers is schedule to continue through 2009. This is the result of legislation passed by the Delaware General Assembly. Illinois and Connecticut were affected by a shift from bundled to unbundled electricity services. The average industrial price increased to 6.4 cents per kWh, or 3.7 percent higher than 2006. Average commercial prices increased to 9.7 cents per kWh, a 2.0 percent increase over 2006. Industrial and Commercial retail sales increased 1.6 percent and 2.8 percent, respectively. When compared to 2006, 2007 industrial sector retail revenue increased by 5.5 percent to $65.7 billion and commercial sector retail revenue increased 4.9 percent to $128.9 billion. The difference between increased sales versus increased revenues, 1.6 percent compared to 5.5 percent for the industrial sector and 2.8 percent compared to 4.9 percent for the commercial sector is primarily due to increased fossil fuel prices from 2006 to 2007. Residential prices increased to 10.7 cents per kWh from 10.4 cents per kWh from 2006 to 2007. Average residential prices rose sharply in New England and the West South Central Census Divisions as Texas and the New England States had large price increases for the third year in a row. States experiencing the largest increases relied primarily on fossil fuels to generate electricity at peak capacity. Residential revenues increased to $148.3 billion for 2007, an increase of $7.7 billion or 5.5 percent over 2006. Total retail sales of electricity in 2007 were 3,765 million MWh compared to 3,670 million MWh in 2006 reflecting an annual growth in electricity sales of 2.6 percent, equaling the growth in sales from 2005 to 2006 and out pacing the 1.8 percent average annual growth since 1995. Sales to the residential sector increased by 41 million MWh from 2006 to 2007, but this 3.0 percent positive growth is a turn around from 2006 when residential sales decreased by 0.5 percent, which was only the second time residential sales decreased since 1974. Total retail revenues in 2007 were $343.7 billion. Annual growth in electricity revenues in 2007 was 5.3 percent, reflecting increases in the cost of fuels used to generate electricity. Revenues to the residential sector increased by 5.5 percent from 2006 to 2007, revenues in the commercial sector increased by 4.9 percent, and revenues in the industrial sector increased 5.5 percent. The percentage increases in revenues in all sectors outpaced their respective increases in sales due to higher average retail prices in 2007.
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