WhiteFence Index Reveals Home Utility Price Trends: July, 2012

HOUSTON, July 8, 2012 – WhiteFence.com (www.whitefence.com) , the nation’s leading site to compare, connect and save on home services, today released analysis of consumer sales data through June 2012 that explores summer trends in utility bills paid by the average family in major U.S. cities.

ELECTRICITY

Extremes:
1. The city with the highest average monthly bill in the month of June was Orlando, FA, at $178.85
2. The city with the lowest average monthly bill in the month of June was Los Angeles, CA at $37.44.
3. The largest increase MOM (Month over Month) was seen in Atlanta, GA, up from $59.17 to $116.08.
4. Largest Decrease MOM (Month over Month) was seen in Seattle, WA, down from $95.81 to $86.65

For many providers, the summer season begins in June and continues through September. Electricity usage increases in many places during the summer season, and some providers have summer rate schedules set so that usage over a certain baseline costs more during the summer than the same usage over the baseline would have cost in the winter or non-summer months.

Atlanta, GA, served by Georgia Power, saw the highest bill increase according to the index. This is explained by two factors. The most significant is a large increase in electricity usage between May and June (relative to some of the other cities and states listed in the index), and the other factor is the switch to summer pricing. Usage in the tiers above 650kWh costs almost double what usage in those tiers costs during the winter months. This increase, however, does not bring Atlanta’s monthly bill to the height that Orlando, FL saw in June. The rates in Orlando (served by OUC) did not change at all between May and June and in fact change very little if at all over the course of the year, but comparably high usage in addition to standard fees and costs on each bill bring it to a total that is unmatched in the WhiteFence Index for the month of June.

Seattle, WA, served by Puget Sound Energy, sees steadily decreasing usage in the summer months due to the milder weather during that time of year (relative to other cities and states listed in the index). Rates do not change significantly across May and June, but the decrease in usage accounts for a small decrease in the average monthly bill. The lowest bill in the WhiteFence Index, however, belongs to Los Angeles, CA. In general, electricity usage in California is low due to mild weather, and also due to the government’s energy efficiency programs. Relatively lower rates compared to other providers in California are the final contributor to the lowest June bill in the index.

NATURAL GAS

Extremes:
1. The city with the highest average monthly bill in the month of June was New York City, NY, at $36.82.
2. The city with the lowest average monthly bill in the month of June was Boston, MA at $8.20.
3. The largest increase MOM (Month over Month) was actually just the smallest decrease, seen in Chicago, IL, down from $29.07 to $27.82.
4. Largest Decrease MOM (Month over Month) was seen in New York City, NY, down from $43.81 to $36.82.

While electricity usage increases in many places during the summer season, natural gas usage is declining. In fact, the average monthly bill for every city in the index decreased this month

The average bill for Chicago, IL, saw the smallest decrease according to the WhiteFence Index. The bill for Chicago is calculated using rate information for both Nicor and People’s Gas. The base energy price increased for both providers (significantly for Nicor), so even though usage in Chicago decreased, the resulting bill decrease was smaller compared to other cities in the index. New York City, NY held its record as having the highest bill of all the cities in the WhiteFence Index, calculated using rate info from National Grid. New York City consistently has relatively high usage compared to other cities, and accordingly has seen the highest bills; however, New York City also saw the largest decrease in its average monthly bill from May to June, partially because base energy price decreased along with usage.

The city with the lowest bill for the month of June was Boston, MA, served by NSTAR. This is the third month in a row for Boston- rates have not changed since last month, but usage has continued to decrease as the summer season approaches its peak.