The monthly energy updates have been published for October 2021 fuel prices (data from GasBuddy.com) and electricity prices and natural gas prices for August 2021 (price data from the U.S. Energy Information Agency).
Governor Gavin Newsom had much to reflect on and be thankful for in 2021. First, he survived a recall election and second, the Golden State is poised to see a record budget surplus, which means he will again have an opportunity to offer extra funding through his budget proposal, which he unveiled on January 10, 2022.
But all that glitters is not gold in California. The State’s “first in the nation” shiny badge of honor in all things renewable is looking a little tarnished these past several months with continually rising energy prices and several reports that suggest that California will not meet its greenhouse gas reduction goals, perhaps by a few decades (see our previous articles on these issues) and also falling well behind on its goal to have 5 million all-electric vehicles on California roads (presumably these cars would be replacing conventional fueled vehicles).
Highest in the Nation Energy Costs
In August, for example, California’s energy costs again broke new barriers as the average residential electricity rate (12-month moving average) surged to the highest among the contiguous states. While California leaders often trumpet the State as a leader in a number of arenas, the most current price data also shows the State continues to lead in imposing high costs of living on its residents.
- Gasoline: Highest price among all states
- Diesel: Highest price among all states
- Residential Electricity Price: Highest cost among contiguous states
- Commercial Electricity Price Highest cost among contiguous states
These high costs are hammering every sector of society and all income classes – but particularly those who can afford it least.
In a broader framework, California has committed to policies requiring essentially full electrification of the California economy. At the same time, these policies are resulting in California energy prices at or near the highest among states.
But won’t this approach undermine the State’s competitiveness? Through these policies, the State is seeking to overcome the basic economic principle that demand for something does not rise if the price keeps getting higher, through the simple expedient of ensuring there is no other choice.
As Energy In Focus continues to review these figures and numerous third party reports, it is clear that cost impacts continue to rise relative to the rest of the nation and these growing costs continue to impose a disparate burden to the lower wage households who have seen the highest loss of jobs as a result of the COVID-19 state-ordered closures. While the State has begun to reopen and jobs are returning, the realities of these impacts remain very real.
Increased transportation costs and the pressure from the highest CPI since 2008 will result in higher costs being applied to everything we buy.
California Prices for Gasoline and Diesel in October are Highest in the Nation
Gasoline
- The October average price per gallon of regular gasoline in California rose 13 cents from September to $4.53. The California premium above the average for the US other than California ($3.26) eased to $1.27, a 39.1% difference.
- In October, California again had the highest gasoline price among the states and DC. Californians paid $1.55 a gallon more than consumers in Oklahoma, the state with the lowest price.
Diesel
- The October average price per gallon of diesel in California rose 22 cents from September to $4.62. The California premium above the average for the U.S. other than California ($3.49) eased to $1.13, a 32.5% difference.
- In October, California had the highest diesel price among the states and DC.
California Residential Electricity Prices for August Rise to Highest in the U.S.
- California average Residential Price for the 12 months ended August 2021 was 22.14 cents/kWh, 71.6% higher than the U.S. average of 12.90 cents/kWh for all states other than California. California’s residential prices jumped to the highest among the contiguous states.
- For the 12 months ended August 2021, the average annual Residential electricity bill in California was $1,523, or 53.2% higher ($529) than the comparable bill in 2010 (the year the AB 32 implementation began with the Early Action items). In this same period, the average U.S. (less CA) electricity bill for all the other states grew only 5.9% ($81).
California Commercial (Highest in the U.S.) and Industrial Electricity Prices (2nd Highest in the U.S.) in August
- California average Commercial Price for the 12 months ended August 2021 was 18.73 cents/kWh, 80.1% higher than the U.S. average of 10.40 cents/kWh for all states other than California. California’s commercial prices remained the highest among the contiguous states.
- California average Industrial Price for the 12 months ended August 2021 was 14.92 cents/kWh, 125.7% higher than the US average of 6.61 cents/kWh for all states other than California. California’s industrial prices remained the 2nd highest among the contiguous states, behind only Rhode Island.
California Natural Gas Prices in August
Average prices ($ per thousand cubic feet) for the 12 months ended August 2021 and changes from the previous 12-month period for each end-user:
