Historical Price Annual Update

On our website we keep track of the average Day Ahead hourly price broken out by month, quarter (3 months) and year. If you haven't had a chance, take a look at Day Ahead vs Standard Prices for the breakdown. It is important to note, that this type of detail weighs each hour equally, but clearly when it comes to managing your electricity usage 4pm is more important than 4am.

The first 3 years of Power Smart Pricing has given us a great amount of data to examine. If we look first at the annual average, you can clearly see how significantly low the prices were in 2009. At 2.682 cents per kWh the average is far lower than 2008's 4.744 and 2007's 4.428.  A down economy for the first half of the year dropped Commercial and Industrial demand for electricity, a cool Midwest summer lowered Residential demand and no major service or storm related damage all factored in keeping prices low.

Representing a first in the history of Power Smart Pricing we did not send a single High Price Alert (an alert sent out when at least one hour during the following day is higher than 13 cents per kWh). In fact, many of you called in thinking something might have been wrong and that you were missing them. Well, once we reassured our callers that everything was in order they were more than happy to hear about the low prices. The highest single hour price was only 7.993 cents (3pm-4pm on June 24). There were also only 5 hours all year over 7 cents. 

A month by month breakdown shows which months had the highest impact on the low 2009 prices. While each month in 2009 had a lower average than its 2008 counterpart, the summer months represented the most significant drops. For example, July 2009 was more than 4 cents lower than July 2008.

We can safely assume that we won't see a year like 2009 again (in many ways...). From our small sample of 2010 prices, it looks to be closer to 2009 than 2008, but only time will tell. So before we get ahead of ourselves, let's be thankful for some low prices and big savings in 2009.  Whether you realize it or not, your success is expanding the opportunity for other communities around the country to take advantage of real-time electricity pricing. Great work by all!