Residential and Commercial Fuel Prices in Major U.S. Cities

摘要

The report summarizes the results of a GRI-commissioned study to survey and compare residential and commercial fuel prices in 18 representative U.S. cities. Results show that although the 18 utilities in the sample offer a large number of different electric rates, most residential and commercial customers use the utilities' basic rate schedule. The residential electric rate structure generally varies seasonally, with block rates increasing in the summer cooling season. Commercial electric rate structures are more complicated, with separately metered demand charges typically offered in conjunction with a basic time-of-use rate. On the other hand, gas rates are simpler in structure for both residential and commercial customers. The gas rates offered are simple basic rates with either a flat rate or a declining block structure. Most gas rates do not vary seasonally; those that do vary reflect shifts in the fuel cost adjustment between seasons. The survey also ranks the 18 cities by the average price of electricity in dollars per million Btu. The seasonal electric rates make electricity more competitive with natural gas during the winter heating season due to the low market-clearing prices. During summer, electricity competes effectively with natural gas despite the higher market price due to the limited cooling availability of natural gas.