Lifted in toto from Bloomberg, May 12:
Consumer prices climbed last month by the most in three years, but prices for electricity surged even more, highlighting an intensifying battle between utilities, consumers and power grids.
Electricity prices jumped 6.1% last month compared to a year earlier, according to Bureau of Labor Statistics data published on Tuesday. That’s well above the overall consumer price index, which rose 3.8%, the most since May 2023.
Mounting electricity demand from data centers has strained US energy grids, and customers are feeling the impact from soaring wholesale power costs. Lawmakers have attacked utilities and grid operators over higher electricity bills, while utilities and regulators are calling into question the design of the US grid. Concerns over energy affordability are emerging as a critical issue in this year’s midterm elections.
Read more: Soaring Electric Bills Unleash Voter Fury Before US Midterms
To answer voters’ complaints, politicians are working to reform the utility model and tamp down rates. The New Jersey Board of Public Utilities, for example, announced last week New Jersey to Complete Utility Revenue Reform Study by July 19 different ways to reward utilities based on performance, including affordability and reliability, instead of the current model that ties their profit to investments in infrastructure.
Also at Bloomberg May 12:
Here Are the Key Takeaways for the US CPI Report for April
Earlier:
Inflation: "CPI for all items rises 0.6% in April; shelter and gasoline up "
