Friday, 08 September 2017

Retail power prices reflect rising delivery costs

Despite declining costs for generating electricity from fossil fuels in the U.S., retail electricity prices have continued to rise in line with inflation – mainly due to higher expenses for delivering the electricity to end-customers. Power transmission costs have increased in real 2016 dollar terms from 2.2 cents/kWh in 2006 to 3.2 cents/kWh in 2016, roughly offsetting the decrease in the generation costs.

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