AVERAGE ENERGY PRICES IN THE WASHINGTON-BALTIMORE AREA:  JUNE 2009 (PDF)

In June 2009, Washington-Baltimore area consumers paid more than the U.S. city average for utility (piped) gas (10.9 percent) and electricity (13.6 percent) but less than the national average for gasoline (-4.4 percent) as measured by the Consumer Price Index, the Bureau of Labor Statistics of the U.S. Department of Labor reported today.  Sheila Watkins, the Bureau’s regional commissioner, noted that the 13.6 percent gap between local and national electricity prices was the largest difference in June in the last 10 years. (See table A.)

A therm—a measure of constant heating value—of utility (piped) gas, commonly referred to as natural gas, in the Washington-Baltimore area averaged $1.176 in June 2009.  The local cost of natural gas was 35.6 percent lower than one year earlier but 27.3 percent higher than in June 1999.  Nationwide, natural gas prices fell 32.8 percent over the year to $1.060 per therm.  Locally, the natural gas price has remained above the national price level in June for the last 10 years.  (See chart A.)  However, since June 1999, national prices increased 58.9 percent, while local prices advanced 27.3 percent, resulting in a narrowing differential between local and national prices.

A kilowatt-hour (kWh) of electricity cost Washington-Baltimore area consumers $0.150 in June 2009, 9.5 percent higher than the previous year.  The U.S. average price for electricity was $0.132 in June 2009, up 3.1 percent from one year earlier.  From June 2001 to June 2006, local electricity prices were below national prices by an average of 5.6 percent.  However, since June 2007, local electricity prices have been above those for the nation.  Washington’s June 2009 electricity prices were 13.6 percent higher than U.S. levels—the highest percent increase in the last 10 years. (See chart B.)

Chart A.  Average prices for utility (piped) gas, United States and Washington-Baltimore area, June 1999-2009

Chart B.  Average prices for electricity, United States and Washington-Baltimore area, June 1999-2009

Gasoline prices are historically subject to monthly rapid fluctuations, and from June 2007 to June 2008, gasoline prices jumped 30.3 percent in the Washington-Baltimore area.  In the year ended June 2009, the local price of gasoline dropped 36.3 percent, contrary to the general upward trend over the last ten years.  The local price moved similarly to the nation, where gasoline prices increased 32.7 percent from June 2007 to June 2008, then declined 34.8 percent over the last 12 months.  The June 2009 gasoline price for Washington was $2.571 per gallon, slightly lower than the U.S. average of $2.681.  Local gasoline prices have been close to the national average since 1999, with differences ranging from -4.1 percent to 5.9 percent.  (See chart C.)

Chart C.  Average prices for gasoline, United States and Washington-Baltimore area, June 1999-2009

The Washington-Baltimore, D.C.-Md.-Va.-W.Va., Consolidated Metropolitan Statistical Area (CMSA) includes the District of Columbia; Baltimore City and the counties of Anne Arundel, Baltimore, Calvert, Carroll, Charles, Frederick, Harford, Howard, Montgomery, Prince George’s, Queen Anne’s, and Washington in Maryland; the cities of Alexandria, Fairfax, Falls Church, Fredericksburg, Manassas, and Manassas Park and the counties of Arlington, Clarke, Fairfax, Fauquier, King George, Loudoun, Prince William, Rappahannock, Spotsylvania, Stafford, and Warren in Virginia; and the counties of Berkeley and Jefferson in West Virginia.

Additional information

Information in this release will be made available to sensory impaired individuals upon request.  Voice phone: 202-691-5200; TDD message referral phone number: 1-800-877-8339.

For personal assistance or further information on the CPI data, as well as other Bureau data, contact the Mid-Atlantic Information Office at 215-597-3282 from 8:30 a.m. to 12:00 p.m. and 1:00 p.m. to 3:30 p.m. ET.  Information on the Consumer Price Index and other surveys and programs is available on our Web site at www.bls.gov/ro3/.

Technical Information

Average prices for electricity, utility (piped) gas, and gasoline are published monthly for the U.S. city average, the 4 regions, the 3 population size classes, 10 region/size-class cross-classifications, and the 14 largest local index areas.  For electricity, average prices per kilowatt-hour (kWh) and per 500 kWh are published.  For utility (piped) gas, average prices per therm, per 40 therms, and per 100 therms are published.  For gasoline, the average price per gallon is published.  Average prices for commonly available grades of gasoline are published as well as the average price across all grades.

Price quotes for 40 therms and 100 therms of utility (piped) gas and for 500 kWh of electricity are collected in sample outlets for use in the average price programs only.  Since they are for specified consumption amounts, they are not used in the CPI.  All other price quotes used for average price estimation are regular CPI data.

With the exception of the 40 therms, 100 therms, and 500 kWh price quotes, all eligible prices are converted to a price per normalized quantity.  These prices are then used to estimate a price for a defined fixed quantity.