Salt River Project’s average electricity prices surged 53.9% in 2018 as compared to almost 20 years ago in 1999. Tucson Electric Power’s average electricity prices increased sharply by 35.5% as compared to almost 20 years ago in 1999.
SALT RIVER PROJECT
2018
- Salt River Project’s residential electricity revenue in value was at $1,546,535,000 in 2018. Its residential electricity revenue in total units sold was at 13,238,810 megawatt-hours.
- Therefore, its average residential electricity price in 2018 was at $116.81 per megawatt-hour.
- Further, the average residential electricity price in 2018 by Salt River Project was at $0.1168 or US cents 11.7 per kilowatt-hour.
- In 2018, Salt River Project’s average electricity prices increased by 4.5% as compared to five years ago (2013), jumped 21.9% as compared to 10 years ago (2008), and surged 53.9% as compared to almost 20 years ago (1999).
2013
- Salt River Project’s residential electricity revenue in value was at $1,407,566,000 in 2013. Its residential electricity revenue in total units sold was at 12,581,984 megawatt-hours.
- Therefore, its average residential electricity price in 2013 was at $111.87 per megawatt-hour.
- Further, the average residential electricity price in 2013 by Salt River Project was at $0.1118 or US cents 11.2 per kilowatt-hour.
- In 2013, Salt River Project’s average electricity prices rose 16.7% as compared to 5 years ago (2008) and 47.4% as compared to 14 years ago (1999).
2008
- Salt River Project’s residential electricity revenue in value was at $1,232,609,000 in 2008. Its residential electricity revenue in total units sold was at 12,775,125 megawatt-hours.
- Therefore, its average residential electricity price in 2008 was at $96.48 per megawatt-hour.
- Further, the average residential electricity price in 2008 by Salt River Project was at $0.0964 or US cents 9.6 per kilowatt-hour.
- In 2008, Salt River Project’s average electricity prices climbed 26.3% as compared to almost 10 years ago (1999).
1999
- Salt River Project’s residential electricity revenue in value was at $681,775,000 in 1999. Its residential electricity revenue in total units sold was at 9,020,380 megawatt-hours.
- Therefore, its average residential electricity price in 1999 was at $75.58 per megawatt-hour.
- Further, the average residential electricity price in 1999 by Salt River Project was at $0.07558 or US cents 7.6 per kilowatt-hour.
TUCSON ELECTRIC POWER
2018
- Tucson Electric Power’s residential electricity revenue in value was at $473,673,200 in 2018. Its residential electricity revenue in total units sold was at 3,766,234 megawatt-hours.
- Therefore, its average residential electricity price in 2018 was at $125.77 per megawatt-hour.
- Further, the average residential electricity price in 2018 by Tucson Electric Power was at $0.1257 or US cents 12.6 per kilowatt-hour.
- In 2018, Tucson Electric Power’s average electricity prices increased sharply by 21.1% as compared to five years ago (2013), rose 38.5% as compared to 10 years ago (2008), and surged 35.5% as compared to almost 20 years ago (1999).
2013
- Tucson Electric Power’s residential electricity revenue in value was at $400,999,400 in 2013. Its residential electricity revenue in total units sold was at 3,866,665 megawatt-hours.
- Therefore, its average residential electricity price in 2013 was at $103.71 per megawatt-hour.
- Further, the average residential electricity price in 2013 by Tucson Electric Power was at $0.1037 or US cents 10.4 per kilowatt-hour.
- In 2013, Tucson Electric Power’s average electricity prices rose 14.3% as compared to 5 years ago (2008) and 11.8% as compared to 14 years ago (1999).
2008
- Tucson Electric Power’s residential electricity revenue in value was at $351,078,000 in 2008. Its residential electricity revenue in total units sold was at 3,852,707 megawatt-hours.
- Therefore, its average residential electricity price in 2008 was at $91.12 per megawatt-hour.
- Further, the average residential electricity price in 2008 by Tucson Electric Power was at $0.0911 or US cents 9.1 per kilowatt-hour.
- In 2008, Tucson Electric Power’s average electricity prices edged down 2.1% as compared to almost 10 years ago (1999).
1999
- Tucson Electric Power’s residential electricity revenue in value was at $253,352,000 in 1999. Its residential electricity revenue in total units sold was at 2,736,837 megawatt-hours.
- Therefore, its average residential electricity price in 1999 was at $92.57 per megawatt-hour.
- Further, the average residential electricity price in 1999 by Tucson Electric Power was at $0.0926 or US cents 9.3 per kilowatt-hour.
ADDITIONAL FINDINGS
ARIZONA STATE AVERAGE ELECTRICITY PRICE
- In 2018, the average electricity price in Arizona was around US cents 12.8 per kilowatt-hour, up 9.4% as compared to five years ago (2013), rose 24.3% as compared to 10 years ago (2008), and increased 54.22% as compared 17 years ago (2001).
- In 2013, the average electricity price in Arizona was US cents 11.7 per kilowatt-hour.
- The average electricity price in Arizona in 2008 was US cents 10.3 per kilowatt-hour.
- In 2001, the average electricity price in Arizona was US cents 8.3 per kilowatt-hour.
RESEARCH STRATEGY
To find the average electricity price increases for Salt River Project (SRP) and Tucson Electric Power (TEP) over the last 5, 10, 15, or 20 years, we scoured through various articles to find pre-compiled information on percentage increases and/or the average price by these two utility providers. We were able to find only a few articles that talked about increases in terms of value for recent years. To compare the value with historical prices, we looked for news articles and press releases for pricing information that were published earlier in the 2000s. However, this strategy did not provide any relevant results. These articles only covered information about the utility providers’ monthly bills of customers, sector-wise electricity data, state and region-wise consumption data, solar information, and project news.
We decided to consult the official government website for energy information — the U.S. Energy Information Administration (EIA) to find the average prices by various utility providers. However, the website reports only covered information about the sector and region-wise prices. We also found sales and consumption data for each utility provider in the United States. This helped us to triangulate the average electricity price annually for a particular utility provider. The data was officially published in the form of a zipped file containing several excel files. We’ve attached the download links of the zipped files as well the source website in the sources. Additionally, for easy accessibility, we’ve combined the relevant sheets in Google Excel with the right set of data used for triangulation.
CALCULATIONS:
We’ve used the below formula to calculate the average electric prices per megawatt for both the utility providers for each year:
Average electricity price per unit = total amount of sales in US$/total units sold in megawatt-hour
SALT RIVER PROJECT
[A] Residential electricity revenue in US dollars
[B] Residential electricity revenue in megawatt-hour
[C] The average residential electricity price (Calculation: A / B = C)
2018: $116.81 per megawatt-hour
2013: $111.87 per megawatt-hour
2008: $96.48 per megawatt-hour
1999: $75.58 per megawatt-hour
[D] Converting the megawatt-hour price into kilowatt-hour price (Calculation: C / 1000 = D)
2018: $0.1168 or US cents 11.7 per kilowatt-hour
2013: $0.1118 or US cents 11.2 per kilowatt-hour
2008: $0.0964 or US cents 9.6 per kilowatt-hour
1999: $0.07558 or US cents 7.6 per kilowatt-hour
[E] Percentage change in average prices (Calculations: [recent year’s price - previous year’s price] / previous year’s price)
2018: [(11.7-11.2)/11.2], [(11.7-9.6)/9.6], and [(11.7-7.6)/7.6]
= 4.5%, 21.9%, and 3.9%
2013: 11.2 per kilowatt-hour [(11.2-9.6)/9.6] and [(11.2-7.6)/7.6]
= 16.7% and 47.4%
2008: 9.6 per kilowatt-hour [(9.6-7.6)/7.6]
= 26.3%
TUCSON ELECTRIC POWER
[A] Residential electricity revenue in US dollars
[B] Residential electricity revenue in megawatt-hour
[C] The average residential electricity price (Calculation: A / B = C)
2018: $125.77 per megawatt-hour
2013: $103.71 per megawatt-hour
2008: $91.12 per megawatt-hour
1999: $92.57 per megawatt-hour
[D] Converting the megawatt-hour price into kilowatt-hour price (Calculation: C / 1000 = D)
2018: $0.1257 or US cents 12.6 per kilowatt-hour
2013: $0.1037 or US cents 10.4 per kilowatt-hour
2008: $0.0911 or US cents 9.1 per kilowatt-hour
1999: $0.0926 or US cents 9.3 per kilowatt-hour
[E] Percentage change in average prices [Calculations: (recent year’s price - previous year’s price) / previous year’s price]
2018: [(12.6-10.4)/10.4], [(12.6-9.1)/9.1], and [(12.6-9.3)/9.3]
= 21.1%, 38.5%, and 35.5%
2013: [(10.4-9.1)/9.1] and [(10.4-9.3)/9.3]
= 14.3% and 11.8%
2008: [(9.1-9.3)/9.3]
= -2.1%
ARIZONA STATE
Percentage change in average prices (Calculations: [recent year’s price - previous year’s price] / previous year’s price)
2018: [(12.8/11.7)/11.7], [(12.8/10.3)/10.3], and [(12.8/8.3)/8.3]
= 24.3%, 9.4%, and 54.22%