ELECTRICITY COSTS

	Electricity costs vary from State to State and within states.
	Electricity costs around the U.S. can vary by a factor of 10 depending on the State, location within the State and by local Electric Distribution Companies (EDCs). Electricity rates can be low if the facility is close to a hydro electric plant. Electricity rates can be very high when served by nuclear plants or oil in California, Hawaii and the US Virgin Islands.
	In many areas, electricity costs have increased following deregulation due the State PUCs granting power companies the right to recover "stranded investments" from their rate payers (often called Transition Costs on the deregulated electricity bills.). Many clients report their electricity costs increase by 10% to 15% following their State's deregulation of electricity markets
	Some electric utilities design their rates based on electrical demand peak (KW or KVA) ... plus KWH consumption. Others tie their rate design to their true electricity generation cost (market based rates) and vary the KWH and KW cost based on the time-of-day and day of the week.
	Some EDCs have also added new fees for services traditionally included in the rate such as "line extension" fees for new electricity services.
	In other cases there are new government required fees and taxes added to electricity bills. Some states also have 'KWH taxes' to fund state demand-side management (DSM) programs also known as public benefit funds.

AVERAGE COST PER KWH (in cents)

Average Retail Price of Electricity to Ultimate Customers by End-Use Sector, by State, '0ctober 2006'
	(Cents per Kilowatthour)
	All Sectors
Census Division
and State
	Oct-06
New England	14.12
Connecticut	14.79
Maine	12.15
Massachusetts	14.62
New Hampshire	13.53
Rhode Island	13.75
Vermont	11.48
Middle Atlantic	11.43
New Jersey	11.37
New York	14.33
Pennsylvania	8.48
East North Central	7.5
Illinois	7.19
Indiana	6.45
Michigan	8.24
Ohio	7.68
Wisconsin	8.09
West North Central	6.39
Iowa	6.71
Kansas	6.77
Minnesota	6.81
Missouri	5.83
Nebraska	5.83
North Dakota	6.21
South Dakota	6.81
South Atlantic	8.56
Delaware	10.21
District of Columbia	11.35
Florida	10.5
Georgia	7.58
Maryland	10.78
North Carolina	7.68
South Carolina	7.09
Virginia	6.78
West Virginia	5.08
East South Central	6.54
Alabama	6.64
Kentucky	5.37
Mississippi	7.55
Tennessee	7.02
West South Central	9.41
Arkansas	6.93
Louisiana	9.1
Oklahoma	7.13
Texas	10.16
Mountain	7.61
Arizona	8.64
Colorado	7.52
Idaho	4.66
Montana	7.32
Nevada	9.59
New Mexico	7.66
Utah	6.06
Wyoming	5.49
Pacific Contiguous	10.45
California	12.15
Oregon	6.71
Washington	6.51
Pacific Noncontiguous	17.78
Alaska	12.66
Hawaii	20.55
U.S. Total	8.83

Source: � Energy Information Administration, Form EIA-826 ,
"Monthly Electric Utility Sales and Revenue Report with State Distributions."

NOTES

1: Electricity costs have increased since the October 2006 version
of the EIA-826 report was released. Next EIA 826 report will be
released in October 2007.

2. Electricity cost have increased :
    - Chicago Il : with end of frozen commercial electricity rates
          from increased 57% from $0.07 to $0.11/ kwh effective 1/1/07
    - Baltimore MD: with the end of frozen residential electricity rates
          increased 72% effective 7/1/06

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