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    Friday, April 26, 2024

    NAHB: Electricity accounts for 9 percent of housing expenditures

    At an average cost of more than $100 a month, electricity is the most expensive utility American homeowners have to pay each month.

    The National Association of Home Builders, analyzing information from the Department of Energy’s Energy Information Administration as well as the United States Bureau of Labor Statistics, calculated that the electric bill accounts for about 9 percent of the average expenditures on housing.

    The EIA recently released data showing that the average monthly electric bill was $110.21 in 2013. The administration does an annual survey of the electric industry to estimate factors such as the average monthly residential bill and the average electricity consumption per month.

    Costs varied considerably by state and region. In the contiguous United States, electricity cost the most in the West South Central region of Arkansas, Louisiana, Oklahoma, and Texas. Here, the monthly electric bill averaged $126.75.

    The region with the least expensive electricity bill was the West Coast. In California, Oregon, and Washington, the average cost for electricity per month was $90.84. Washington had the lowest cost per kilowatt hour at 8.7 cents.

    Hawaii had the highest average electricity cost at $190.36 per month as well as the highest price per kilowatt hour at 36.98 cents. New Mexico had the cheapest monthly electric bill at $76.56.

    The New England states paid an average cost of $105.09, the fourth lowest of the 10 regions identified by the EIA. Connecticut had the highest average bill of the six states at $132.07 as well as the highest charge per kilowatt hour at 17.55 cents. Maine had both the lowest average monthly bill in the region at $79.13 and the cheapest cost per kilowatt hour at 14.35 cents.

    Josh Miller, writing for NAHB’s economics and policy blog Eye on Housing, says the costs do not necessarily correlate with the levels of energy consumption. Despite having the highest rates and costs, Hawaii had the lowest average monthly electricity use at 515 kilowatt hours. Maine used the next lowest amount consumption at 551 kilowatt hours, followed by California at 557 kilowatt hours.

    Louisiana had the highest average electricity consumption, using 1,273 kilowatt hours per month. This state was followed by Tennessee at 1,245 kilowatt hours per month and Mississippi at 1,220 kilowatt hours per month.

    The New England region averaged 648 kilowatt hours of electricity consumption per month, the third lowest of the 10 regions. Connecticut had the highest monthly consumption, 752 kilowatt hours, while Maine had the lowest at 551 kilowatt hours.

    Miller credits Maine’s low electricity use to milder summers reducing the need for air conditioning. He says homes in the Northeast are also more likely to rely on heating oil rather than electricity during the winter.

    “Although climate plays a significant role in consumption, and production a significant role in pricing, the age of the housing stock also plays a role,” says Miller. “Newer homes tend to be more energy efficient than older homes.”

    A previous NAHB study found that newer homes use less energy per square foot than older homes. This analysis also determined that homes built in the past 10 years account for only 3.2 percent of all energy consumption in the United States.

    Miller says residential electricity use accounted for most sales by the electric industry at 37.4 percent, though commercial use was close behind at 36.1 percent. Industrial electrical use accounted for 26.3 percent of sales.

    Residential customers also paid a higher rate than other sectors, with the exception of the East South Central states. There, transportation paid a higher rate than residential customers.

    On average, residential customers paid a rate of 12.13 cents per kilowatt hour. Commercial consumers paid an average rate of 10.31 cents per kilowatt hour, and industrial consumers paid 6.88 cents per kilowatt hour.

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