By: Dan DeRoos |
Every year The U.S. Chamber of Commerce’s Global Energy Institute (GEI) compares what the average cost of electricity is in each state and for the third straight year prices have fallen in Ohio, despite the national average reaching its highest point over the past four years.
In 2017 the national average was $10.54 cents per kilowatt hour.
Ohio is below the national average at $9.71 cent/kWh.
Ohioans have been enjoying a decline of that number over the past few years and there’s a reason for that according to GEI Senior Director for Policy Heath Knakmuhs.
“Not surprisingly, of the eight states that experienced a decline in their electricity rates from 2016 to 2017, half of those states are either awash with shale gas (Pennsylvania and Ohio), or directly border them (Delaware and Maryland),” Knakmuhs said in an article for the U.S. Chamber of Commerce.
With fracking producing large amounts of natural gas from shall, gas prices are falling in the region.
That means production is cheaper for power companies using gas-fired plants to create electricity.
Ohio’s average cost of electricity (cent/kWh)
- 2013- $9.16
- 2014- $9.67
- 2015- $9.90
- 2016- $9.74
- 2017- $9.71
The highest average price in the country according to the report is in Connecticut at $17.62 cent/kWh.
The lowest in the US is Louisiana at $7.75.
According to the report prices are expected to drop over the next year.
“The Tax Cuts and Jobs Act lowered corporate tax rates from 35% to 21%, which lowered utilities’ future costs. Those reduced costs are expected to translate into lower rates for customers, which could ease some of rate increases we witnessed this past year.”