The East sees largest price jumps, as price caps were lifted in many markets in 2006.
WASHINGTON (AP) -- The average retail price of electricity increased by more than 9 percent last year, the
largest jump in 25 years, the government said Monday.
Electricity prices rose in 2006 by 10 percent or more in 14 states and the District of Columbia, according to an
annual report released by the Energy Department's Energy Information Administration. The average price
increase was the largest since 1981.
Prices rose nationwide but most of the larger jumps were in the East, mainly due to the lifting of retail electricity price caps in states transitioning to competitive retail markets. That means consumers paid
more from previous cost increases that had not been completely reflected
while the caps were in place, according to the EIA.
Households that use electricity are expected to pay $32, or 4 percent,
more this winter, with the price of power climbing 2 percent to 10.3 cents
per kilowatt-hour, the EIA predicted earlier this month. Thirty percent of U.
S. households are heated by electricity.
While consumers paid more in 2006, emissions of carbon dioxide, sulfur
dioxide, and nitrogen oxides from electricity generation declined,
according to the government report.
Sulfur dioxide emissions fell 7.9 percent, the largest drop since 2000, while carbon dioxide emissions dipped 2.2
percent, and nitrogen oxides emissions declined 4.1 percent. Carbon dioxide in the atmosphere contributes to global warming, while nitrous oxide produces smog and sulfur dioxide causes acid rain.
Decreases in generation from fossil fuels and increases from emissions-free sources like nuclear, hydroelectricity
and wind helped drive the reductions, according to EIA.