A new report shows which countries pay the most and least for their energy. [emphasis, links added]
Wyoming, North Dakota, Idaho, Utah and Nebraska have the cheapest electricity, ranging from an average of 8.24 to 8.82 cents per kilowatt-hour, according to a report from the U.S. Legislative Exchange Commission.
Electricity is 21.08 cents per kilowatt-hour to 39.72 cents per kilowatt-hour in Hawaii.
Consumers pay higher prices for their power companies for states with more regulations in the energy sector, the report said.
The commission released its fourth annual energy affordability report on Wednesday, April 2, “a comprehensive analysis of energy prices in the United States”, Electricity prices are the lowest in several western states, while Hawaii, California and several Northeast states are the lowest in several western states.
With data from the U.S. Energy Information Administration, the report first examines the 2023 electricity prices per kilowatt-hour for the residential, commercial, industrial and transportation sectors of each state.
After assessing the country based on cost, the report analyzes three energy policies shaped by the state legislature: Renewable portfolio standards, participation in CO2 caps and trading plans and statutory rules regarding net measurement.
The report does point out that Alaska and Hawaii are at a disadvantage due to its geographical isolation and lack of common infrastructure with other states.
But the report also found that states with the lowest electricity prices do not have certain policies.
“Idaho, Wyoming and North Dakota – Avoid authorization and capping and trading plans for RPS. Utah is the fourth lowest average of price per kilowatt-hour, with a voluntary renewable target of 20% by 2025, but that’s not a licensing.”
“Idaho does not have a state-mandated net metering at all, and Utah does have a compensation plan. Wyoming does have a net metering.”
By contrast, the five states with the highest electricity prices have implemented stricter regulatory structures.
“These five states have renewable portfolio standards and caps and trading plans,” Reported.
“In addition, each of these states has imposed a mandatory net metering policy on its utilities, which are where utility companies pay consumers who generate electricity from rooftop solar panels to get any excess power from those panels and then push it back onto the grid.”
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