Data Source: U.S. Energy Information Administration, 2021 State Energy Data System (SEDS).
Analysis by Beacon Economics
Highlights
- Post-Great Recession, statewide electricity bills as a percent of GDP have been declining across the U.S. California’s electricity bill as a percentage of GDP was 1.4 percent in 2021, down from 1.5 percent in 2020. These percentages were significantly lower than those for the U.S. without California, which were 1.87 percent in 2021 and 1.93 percent in 2020. Decreased electricity consumption in California has led to a continued decline in electricity bills as a proportion of GDP. In 2021, net interstate flow of electricity reached 698.6 trillion Btu, 90 percent lower than net renewables consumption, and 2.1 times lower than natural gas consumption. If electricity bills as a percent of GDP in California went from the current approximately 1.4 percent to the approximately 2.0 percent GDP (as in Texas), the total expenditures will be approximately $67.5 billion, an increase of approximately $20.2 billion.
- While California has the highest average electricity retail price among the large states (19.65 cents/kWh, compared to 16.11 cents/kWh in New York and 10.14 cents/kWh in Illinois),176 the state’s electricity bill as a share of GDP is among the lowest. This is driven by low electricity consumption thanks to the state’s extensive energy efficiency programs and policies, that have decreased per capita growth in electricity demand. Among the 50 states, California had the fourth-lowest electricity bill as percentage of GDP (1.45%) in 2021—behind New York (1.23%), Washington (1.16%), and Utah (1.24%).
176 Energy Information Administration. State Energy Profiles. November 10, 2022. Accessed on March 20, 2023. Retrieved from: https://www.eia.gov/state/
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