Data Source: U.S. Energy Information Administration, State Energy Data System (SEDS); 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 1.53% in 2023, unchanged from 2022 but 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. (1.80%), the gap has shrunk from 0.62% lower in 2013 to 0.27% lower in 2023.
- California’s ranking in terms of the lowest electricity bill as percentage of GDP has slipped to ninth place in 2023, behind Washington (1.05%), Utah (1.06%), Massachusetts (1.11%), New York (1.17%), Colorado (1.23%), New Jersey (1.33%), Illinois (1.37%), and Delaware (1.43%). Furthermore, all of these states have made sizable reductions in electricity bills as a percent of GDP except for Delaware, which flatlined like California. 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.
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