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U.S. Residential Electricity Prices Decline for the First Time in Many Years

October 10, 2016

During the first six months of 2016, residential customers paid on average 12.4 cents per kilowatthour (kWh), or 0.7% lower than the same period last year. If this trend continues for the rest of 2016, annual average residential electricity prices would decline for the first time since 2002. Over the past five years, nominal residential prices have increased an average of 1.9% annually, about the same rate as overall inflation.

Residential customers in most areas of the country are seeing lower retail electricity prices this year compared with the same time last year. Declining costs of fuel, especially natural gas, have been a key driver of recent reductions in retail electricity prices.

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