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I was born in the summer of 1952. Yup, that was a while ago.
The per-kilowatt-hour price of electricity averaged about one and two-thirds cents halfway through that last year of the Harry Truman Administration. This summer, sixty-seven years later, the average price of electricity is around eight times higher, about thirteen cents.
But all consumer goods and services cost more now. On average, nearly ten times more. The Consumer Price Index is 9.7 times greater this summer than in the summer of 1952.
If you make your way to warm Washington D.C. in the last days of July, you could bump into some of the leading thinkers on the electric industry’s future.
The Feds published May’s Consumer Price Index last week and it brought more good news for electric consumers. While the overall CPI for all goods and services rose 1.8 percent from May 2018, the electric CPI fell 0.2 percent. That’s a two percent difference between the overall and electric CPI.
Additionally, average weekly earnings rose 2.8 percent. So that’s a three percent difference between average earnings and the electric CPI. Electric rates falling behind consumer prices generally and earnings is a very good thing.