Low-cost electricity has long afforded the United States with a competitive economic advantage. In recent years, however, retail electricity prices have risen rapidly in nominal terms. Though this increase in national-average retail electricity prices has largely tracked inflation, some states experienced steep price increases exceeding inflation, whereas many others saw reductions in inflation-adjusted prices. Research at Lawrence Berkeley National Laboratory seeks to better understand recent retail electricity pricing trends and the myriad drivers of changes in state-level prices. The relative influence of various factors differs across states and over time, and relationships may change in the future. Nonetheless, the research findings described in the linked documents underscore the diverse set of price determinants and highlight the need for continued research to inform effective policy and ensure customer affordability.
Our work in this area has resulted in:
Low-cost electricity has long afforded the United States with a competitive economic advantage. In recent years, however, retail electricity prices have risen rapidly in nominal terms. Though this increase in national-average retail electricity prices has largely tracked inflation, some states experienced steep price increases exceeding inflation, whereas many others saw reductions in inflation-adjusted prices. Research at Lawrence Berkeley National Laboratory seeks to better understand recent retail electricity pricing trends and the myriad drivers of changes in state-level prices. The relative influence of various factors differs across states and over time, and relationships may change in the future. Nonetheless, the research findings described in the linked documents underscore the diverse set of price determinants and highlight the need for continued research to inform effective policy and ensure customer affordability.
Our work in this area has resulted in: