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--Like we covered last year around this time, the Energy Information Administration or EIA as well as the Bureau of Labor Statistics recently released their annual state-by-state average end use cost of electricity and natural gas to customers over the past year. You can see in the appended table that the costs varied greatly by region. The national average electricity price rose from $0.169 per kilowatt-hour (kWh) in December 2023 to $0.176 per kWh in December 2024, marking a 4.14% increase.
--Similar to electricity, natural gas prices also climbed over the past year. The national average increased by 6.51%, with prices rising from $1.429 per therm in December 2023 to $1.522 per therm in December 2024.
--There is hope for energy prices to come down more broadly in 2025 as the new administration has unveiled a comprehensive energy strategy aimed at bolstering the United States' position in the global energy market, with a particular emphasis on liquefied natural gas (LNG) exports. Beyond LNG, the administration is prioritizing the acceleration of oil and gas drilling activities on federal lands and waters. By reversing previous limitations, the government intends to boost domestic production, thereby reducing reliance on foreign energy sources. The administration asserts that increasing domestic energy production and expanding export capabilities will lead to lower energy costs for American consumers.
--If you are one of the lucky ones with assets in regions where prices actually came down last year, please feel free to reach out and we can determine if your allowances are reflective of this change. This could be a relatively quick and easy way to adjust rents and increase cashflow.
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