Data Source: U.S. Energy Information Administration, State Energy Data System; U.S. Department of Commerce, Bureau of Economic Analysis.
Analysis by CEC Economics
Challenges
- In recent years, statewide electricity bills as a percent of GDP have been rising across the U.S. California’s electricity bill as a percentage of GDP was 1.54% in 2022, slightly higher than the shares from 2016 to 2021, when it was below 1.5%. Although California still has substantially lower electricity bills as a percentage of GDP compared to the rest of the U.S. (1.93%), the gap has shrunk from 0.65% lower in 2012 to 0.39% lower in 2022.
- California’s ranking in having the lowest electricity bill as percentage of GDP has slipped to eighth place in 2022, behind Washington (1.10%), Utah (1.13%), Massachusetts (1.15%), New York (1.28%), Colorado (1.35%), New Jersey (1.45%), and Delaware (1.48%). California’s slip in the rankings is due to having one of the highest electricity costs per kilowatt-hour (kWh) in the U.S.; its relatively good standing is primarily due to its highly energy efficient economy. Compared to 2021 and 2017, inflation-adjusted electricity expenditure rose 10% in CA and 7% in the rest of the US and 19% in CA and 4% in the rest of the US, respectively. At the same time, GDP rose less than 1% in CA and 2% in the rest of the U.S., and 16% in CA and 11% in the rest of the US, respectively.
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