In the previous article, we covered the data on global electricity prices. This article will mainly focus on the electricity price differences within the USA.
Dated December 2018, released February 2019: https://www.eia.gov/electricity/monthly/archive/february2019.pdf, table 5.6.A
Elite Mining Inc is based in Washington state — it is, therefore, important to take a closer look within the USA.
- The map above shows that the lowest electricity price is 4.71 Cents per kW/h in the state of Washington, of which around 80% of its renewable energy production comes from hydroelectric power.
- Nevada follows at 4.78 Cents per kW/h. Only one-fourth of Nevada’s in-state electricity generation comes from renewable energy. Because Nevada is the driest state in the nation, hydroelectric power supplied slightly less than 5% of Nevada’s net electricity generation. Nevada has a first-of-its-kind hybrid geothermal-solar power plant, which combines geothermal energy with solar PV and solar thermal generation.
- Oklahoma takes the third place with an electricity price of 5.02 Cents per kW/h. This state generates more than one-third of its electricity from renewable resources. Oklahoma ranked second in the nation, behind Texas, in electricity generation from wind in 2018. More power is generated in Oklahoma than consumed, and the surplus is sent to the regional grid, thus allowing the state to have a cheap electricity price.
The highest electricity price is in the state of Hawaii at 28.52 Cents per kW/h. Isolated by the Pacific Ocean, Hawaii is the most petroleum-dependent state in the U.S. Dependence on petroleum, and isolated island grids contribute to the high electricity prices. That’s why Hawaii was the first state to set a deadline for producing 100% of its electricity from renewable sources.
Electricity prices above are what industrial companies are charged. For residential use, the prices are quite different, the lowest prices are in Arkansas and Louisiana, both with 9.01 cents per kW/h, followed by Oklahoma 9.02 cents per kW/h. Georgia comes forth with 9.29 cents per kW/h, and Washington is fifth with 9.35 cents for kW/h. Hawaii still has the highest electricity price with 34.43 Cents per kW/h.
https://www.eia.gov/electricity/monthly/archive/february2019.pdf Tables 1.3.B, 1.10.B, 1.11.B
The average electricity price for industrial usage is 6.65 Cents per kW/h, and there are 25 states with an electricity price under the average, as shown in the table. The national average for residential usage is 12.47 Cents per kW/h.
Elite Mining Inc based in Washington state, has a “base” electricity price of $0.038, but the “out the door” cost (including all other costs associated with receiving the electricity) brings the price currently around $0.052. This is based on negotiations with the PUD, meaning that better rates can be established at higher usage. Also, we are planning to lower this price by investing in solar panels and other sources of renewable energy.
Washington state is the top U.S. producer of hydroelectric power and routinely contributes nearly one-third of the nation’s total net hydroelectric generation. State-level policies, such as renewable portfolio standards, which require a certain share of electricity to come from renewable sources, have increasing targets over time, which has led to continued cost declines. Elite Mining Inc is not indifferent to the ONU appeal to save the planet. This is why we are aiming at 99% of clean energy, which makes the source of our electricity very important.
Currently, we are using around 94% clean electricity (mostly Hydroelectric). The Washington State policy will help us achieve this goal faster, thanks to the “100% Clean Energy bill”
Researched and written by Erald Cipi from Elite Mining Inc R&D.