According to the US Energy Information Administration (EIA), residential electricity prices declined by 0.7% in the first half of 2016 compared to the same period of 2015. Residential customers in most areas of the country are seeing lower retail electricity prices this year compared with the same time last year. In particular in Hawaii, New England, West South Central, Mountain and Middle Atlantic areas. If this trend continues for the rest of 2016, annual average residential electricity prices would decline for the first time since 2002.
Declining costs of fuel, especially natural gas, have been a key driver of recent reductions in retail electricity prices. Over the first six months of 2016, the weighted average cost of natural gas delivered to electricity generators was 28% lower than in the first half of 2015.
Prices are rising in some states and regions in particular in California, Oregon and Washington.