End Use: February 2012

Retail Rates/Prices and Consumption

In this section, we look at what electricity costs and how much is purchased. Charges for retail electric service are based primarily on rates approved by State regulators. However, a number of States have allowed retail marketers to compete to serve customers and these competitive retail suppliers offer electricity at a market-based price.

EIA does not directly collect retail electricity rates or prices. However, using data collected on retail sales revenues and volumes, we calculate average retail revenues per kWh as a proxy for retail rates and prices. Retail sales volumes are presented as a proxy for end-use electricity consumption.

Average Revenue per kWh by State

• Percent Change
• ¢ Per KWh

The average cost of electricity rose in much of the country, except for a few States in the Northeast, the Midwest, the Gulf Coast, and California. The largest increase in revenue per kilowatthour occurred in Hawaii, at 22 %, where oil is the predominant fuel for electricity generation and where the cost of oil rose almost 27 % in the last year. Utah and Wyoming again posted average revenue increases of at least 10 %. The largest three declines were in the District of Columbia, Delaware, and Maryland which dropped between 6 and 9 % between February 2011 and February 2012.

The cost of electricity increased in the residential sector with a small increase in the commercial sector, and decreased in the other sectors. The average cost of electricity in the residential sector in February was 11.55 cents per kilowatthour. The residential sector had the largest decrease in sales at over 10%. Temperatures continued to be higher than normal in most of the country east of the Rocky Mountains driving lower demand in the residential sector. The commercial sector had virtually flat sales. The industrial and transportation sectors had slight increases in retail sales in February over the previous year.

Retail Sales

• Percent Change
• Per Capita
• MWh

As can be seen by the map of heating degree days (HDDs), this February was very mild for most of the country. 47 States had fewer HDDs than last year, 41 had fewer than the 30-year normal. States west of the Rockies had cooler temperatures than the 30-year normal, but were still warmer than February of 2011. The State with the largest decline in HDDs was Louisiana with 30% fewer HDDs than last year. This State also reported the biggest drop in retail sales with a 10% decline. Mild weather drove a decrease in sales in the residential sector for much of the country, but particularly in States on the Gulf Coast. Many States in this region depend heavily on electricity for space heating needs, which means there is a strong correlation between electricity sales and heating demand as well as cooling demand. When temperatures are unseasonably warm in the winter months, there is often a significant decrease in electric demand in the residential sector in this region.

• Change from 2011
• Change from normal