Analysis Reports 2023 Electricity Prices Were Up From 2022

According to finalized data from the U.S. Energy Information Administration, the average residential price of grid electricity in the U.S. increased 6.3% between 2022 and 2023. Further, the average commercial price of electricity rose 1.4% over that same period of time. Between 2013-2023, residential electricity rates increased 31.9%; the cost of commercial electricity increased 22.7% over the last decade as well. 

Additionally, policy-driven electrification efforts, which are being pursued in states across the country, will require additional investments in generation, distribution and transmission infrastructure to produce more electrons and ensure their safe movement across the bulk electric system. All of this is embedded in the rate base passed along to utility customers, and puts upward pressure on retail electricity prices. As recently reaffirmed by the U.S. Department of Energy, per unit of energy, grid electricity is far more expensive than propane. 

Fast Facts: 

• 2023 Average U.S. Residential Electricity Price: 16.00 cents per kWh 
• 2023 Average U.S. Commercial Electricity Price: 12.59 cents per kWh 
• 2023 Average U.S. Industrial Electricity Price: 8.04 cents per kWh 

For more information on the numerous benefits of using propane to power buildings, visit the Home Use and Business Use sections of PERC’s website. For more information, contact NPGA’s Director of State Affairs, Jacob Peterson.