National Electric Rate Survey Ranking of typical residential, commercial and industrial electric bills 2014 Survey 1040 O Street, P.O. Box 80869 Lincoln, NE 68501-0869 p: 402.475.4211 www.les.com Lincoln Electric System
2014 National Electric Rate Survey (January 1, 2014 Bills) The National Electric Rate Survey ranks residential, commercial and industrial electric rates of 106 cities across the nation. (1= Lowest Bill, 106 = Highest Bill) Rates used are those approved to be in effect January 1, 2014, including seasonal differences. Lincoln Electric System (LES) bills are calculated with rates that went into effect January 1, 2014. Bills for investor-owned utilities were collected from Edison Electric Institute s 2014 Typical Winter Bills report. Bills for municipals were surveyed directly by LES. Average bills are calculated using rates from a 12-month period to include seasonal rates. All bill data applies to one month of service. Lincoln ranks 13 th overall, 13 th in residential and 16 th in commercial and industrial combined. LES ranks in the top ten in 5 of 12 categories. Lincoln was 13 th last year. Overall, there are more electric rate increases (76 percent) than decreases (22 percent). Of the municipals, 76 percent reported increases, and 19 percent reported decreases. Of the investor-owned utilities, 76 percent reported increases, and 22 percent reported decreases. Looking at the real price of electricity (rates after adjustment for inflation), Lincoln s real price increased by 1.2 percent. The survey methodology changed in 2012 to calculate average monthly electric bills. This includes the effects of both summer and winter rates. In the past, bills were calculated with electric rates in effect on January 1 st with no consideration for summer rates. 2014 National Rate Survey Summary Page
2014 National Electric Rate Survey (January 1, 2014 Bills) LES residential customers using h pay $94.09, which is 27 percent less than the survey average of $129.61, while LES industrial customers using and 400,000 kwh pay $29,833, 24 percent less than the survey average of $39,070. Regionally, LES annual bills are the third lowest. Only Des Moines, ranked 3rd lowest nationally, and Omaha, ranked 12th lowest nationally, have lower regional rankings than Lincoln. The region includes eight cities in Colorado, Nebraska, Kansas, Minnesota, Iowa and Missouri. 2014 National Rate Survey Summary Page
2014 National Rate Survey The 2014 National Rate Survey compares average monthly bills for rates in effect January 1, 2014 for 106 U.S. cities. Twelve typical usage levels broken into two residential and ten commercial and industrial categories are surveyed. Average bills are calculated using rates from a 12-month period which include seasonal rates. All bill data applies to one month of service. Edison Electric Institute provides information on the majority of the investor-owned utilities, while the municipals and remaining utilities are surveyed or calculated by LES. Bills in each category are ordered from lowest to highest to determine a rank between 1 and 106 for each city. Residential, commercial and industrial, and overall rank is determined by ordering the average ranks for each section. LES overall rank, as shown in Table 1, is 13 th, the same as the previous year. LES residential rank is 13 th, down two spots from 11 th in 2013, and the commercial and industrial rank is 16 th, down two spots from 14 th in 2013. LES ranks in the top ten in 5 of the 12 categories. LES had a system-wide increase of 2.9 percent on January 1, 2014. The average bill increase from 2013 for LES in the survey was 5.3 percent. The survey methodology includes the effects of both summer and winter rates to calculate average monthly electric bills for the year 2014. Prior to 2012, bills were calculated with electric rates in effect on January 1st with no consideration for summer rates. Table 2 lists cities with the highest and lowest overall ranks. Tulsa, OK has the lowest bills in the survey followed by Tacoma, WA; Des Moines, IA; Little Rock, AR; and Boise, ID. Lincoln, NE is 13 th. The highest cost city is Honolulu; however, most of the survey s highest bills come from cities in states such as Massachusetts, Connecticut, New York and California. Of all cities surveyed, 76 percent report average rate increases for the survey categories, and 22 percent report average rate decreases. Chart A depicts the general trend of rate changes. For the eleventh straight year, over half of the cities surveyed reported rate increases. Of the municipals, 76 percent reported increases, and 19 percent reported decreases. Of the investor-owned utilities (IOUs), 76 percent reported increases, and 22 percent reported decreases. Table 3 lists major rate changes since 2013. The biggest decrease belongs to Lansing, MI. The biggest increase belongs to New York City, NY. Table 4 shows the ten lowest and highest bills in all 12 categories. LES is in the ten lowest in 5 categories. In all categories, the lowest bills belong to a city in either Oklahoma, Idaho, Iowa, or Washington. The ten highest bills in each category are made up almost entirely of cities from the northeastern states plus California and Honolulu. Chart B shows sample ranges of all 12 bill categories. Chart C shows average bills per state for a residential customer using h. This customer in Lincoln pays $94.09 compared to the survey s average bill of $129.61. Chart D shows average bills for an industrial customer using 400,000 kwh with a demand. Lincoln s bill is $29,833, and the survey average is $39,070. The real price of electricity (rates adjusted for inflation) is considered in Charts E, F and G. Charts E and F depict average real prices for nine U.S. geographical regions for two survey categories while Chart G traces real prices in Lincoln compared with averages for investorowned utilities, municipal utilities and all utilities surveyed. The lowest residential bills are in the Pacific Northwest (Washington, Oregon) region (with an abundance of hydro power) July 2014 Rates, Forecasting and Load Research 1
while the highest residential bills are in the Pacific Southwest (California) region. The real price for electricity in Lincoln increased 3.5 percent in the h residential category compared to the survey average of 1.7 percent and 5.6 percent in the 400,000 kwh industrial category compared to the survey average of 4.5 percent. When ranked among just the cities in the region, as shown in Chart H, Lincoln has the lowest residential bills. Looking at the five categories ( and ) that represent the Large Light & Power rate class, the lowest bills in all five categories belong to Des Moines. Chart I shows Lincoln s rank as a percentage (rank over 106) compared to the rest of the survey. The region includes eight cities in Colorado, Nebraska, Kansas, Minnesota, Iowa, and Missouri. July 2014 Rates, Forecasting and Load Research 2
Table 1 2014 National Rate Survey The survey methodology changed in 2012 to calculate average monthly electric bills for the year 2014. This includes the effects of both summer and winter rates. In the past, bills were calculated with electric rates in effect on January 1st with no consideration for summer rates. LES Ranking as compared to surveyed cities Survey Rank Category Residential 2014 2013 Change 1. h 2. h 20 15 11 9 Residential Survey Rank: 13 11-5 -2-2 Commercial and Industrial 3. 40 kw and 10,000 kwh (35% Load Factor) 4. 40 kw and 14,000 kwh (49% Load Factor) 5. and 150,000 kwh (42% Load Factor) 7. and 15,000 kwh (28% Load Factor) 8. and 30,000 kwh (56% Load Factor) 9. and 50,000 kwh (93% Load Factor) 11. and 400,000 kwh (56% Load Factor) 12. and 650,000 kwh (90% Load Factor) 6 5 7 11 42 32 6. and 180,000 kwh (50% Load Factor) 31 25-6 4 5 7 9 3 5 10. and 200,000 kwh (28% Load Factor) 60 56-4 28 20 12 8-1 4-10 1 2 2-8 -4 Commercial and Industrial Survey Rank: 16 14 Overall Survey Rank: 13 13-2 0 Notes: Ranks are from 1 (lowest rank) to 106 (highest rank) Positive change indicates an improvement in rank. July 2014 Rates, Forecasting and Load Research 3
Table 2 2014 National Rate Survey Highest and Lowest Overall Ranks Overall Survey Rank 2014 Average Bill (1) Average Rank City (2013 Rank) Difference from 2013 1 2.1 Tulsa, OK (1) 18.1% 2 3.3 Tacoma, WA (2) 4.4% 3 5.7 Des Moines, IA (4) 2.1% 4 6.3 Little Rock, AR (19) -12.1% 5 7.2 Boise, ID (3) 17.1% 6 7.7 Seattle, WA (5) 6.3% 7 9.8 Davenport, IA (8) 2.9% 8 12.3 Shreveport, LA (17) -2.5% 9 13.7 Springfield, MO (15) 0.7% 10 17.0 Oklahoma City, OK (7) 10.9% Overall Survey Rank 2014 Average Bill (1) Average Rank City (2013 Rank) Difference from 2013 97 97.5 San Francisco, CA (99) 4.4% 98 98.8 Waterbury, CT (95) 19.6% 99 99.0 Bridgeport, CT (100) 8.4% 99 99.0 New Haven, CT (100) 8.4% 101 99.8 Pawtucket, RI (94) 25.1% 102 100.3 San Diego, CA (103) 10.7% 103 101.5 Boston, MA (102) 14.8% 104 102.3 Hempstead, NY (104) 2.7% 105 105.1 New York City, NY (105) 37.9% 106 105.9 Honolulu, HI (106) 5.1% (1) Average ranking of the 12 categories July 2014 Rates, Forecasting and Load Research 4
Chart A 2014 National Rate Survey National Trend in Electric Bills 100% 90% 80% 70% 30 12 40 22 8 29 11 21 8 14 6 40 3 37 6 22 3 4 35 44 0 33 4 2 41 22 60% 25 44 50% 40% 30% 20% 45 48 34 62 68 77 55 60 73 53 61 67 56 76 10% 0% 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014* Higher Bills Lower Bills No Change Rate Changes for the 2014 Survey Municipal Investor-owned Overall # Utilities Percent # Utilities Percent # Utilities Percent Average Increases 16 76 65 76 81 76 Average Decreases 4 19 19 22 23 22 No Change 1 5 1 1 2 2 21 100 85 100 106 100 Residential Rate Changes Municipal Investor-owned Overall # Utilities Percent # Utilities Percent # Utilities Percent Average Increases 14 67 66 78 80 75 Average Decreases 6 29 18 21 24 23 No Change 1 5 1 1 2 2 21 100 85 100 106 100 Commercial / Industrial Rate Changes Municipal Investor-owned Overall # Utilities Percent # Utilities Percent # Utilities Percent Average Increases 16 76 65 76 81 76 Average Decreases 2 10 19 22 21 20 No Change 3 14 1 1 4 4 21 100 85 100 106 100 *2014 shows the difference between average monthly bills from 2014 and 2013. Before 2011, winter bills were compared. July 2014 Rates, Forecasting and Load Research 5
Table 3 2014 National Rate Survey Major Rate Changes - Increases City Average Bill Difference from 2013 Overall Rank 2014 2013 Average Bill Differences from 2013 Commercial Residential and Industrial New York City, NY 37.9% 105 105 30.1% 39.5% Las Vegas, NV 30.6% 44 16 10.0% 34.7% Pawtucket, RI 25.1% 101 94 15.6% 27.0% Cambridge, MA 19.8% 95 91 21.8% 19.4% Waterbury, CT 19.6% 98 95 13.8% 20.7% Baton Rouge, LA 18.4% 16 6 15.5% 18.9% Tulsa, OK 18.1% 1 1 11.0% 19.5% Boise, ID 17.1% 5 3 9.7% 18.6% Portland, ME 16.2% 88 76 2.6% 18.9% Tucson, AZ 15.6% 63 43 15.7% 15.5% Anchorage, AK 15.0% 89 84 14.6% 15.0% Boston, MA 14.8% 103 102 13.8% 15.0% Wichita, KS 13.9% 46 27 6.7% 15.3% Kansas City, KS 13.7% 75 58 14.6% 13.6% Dallas, TX 13.5% 82 72 12.0% 13.8% Los Angeles, CA 12.5% 90 89 5.8% 13.9% Cheyenne, WY 11.6% 86 77 11.5% 11.7% Saint Louis, MO 11.1% 19 9 11.0% 11.1% Oklahoma City, OK 10.9% 10 7 8.1% 11.5% San Diego, CA 10.7% 102 103 16.9% 9.5% Buffalo, NY 10.3% 74 59-3.7% 13.1% Portland, OR 10.2% 41 30 9.1% 10.5% Major Rate Changes - creases City Average Bill Difference from 2013 Overall Rank 2014 2013 Average Bill Differences from 2013 Commercial Residential and Industrial Lansing, MI -5.9% 56 73-9.4% -5.3% Pittsburgh, PA -8.7% 29 50-19.0% -6.6% Erie, PA -10.9% 23 44-4.9% -12.1% Little Rock, AR -12.1% 4 19-9.3% -12.7% Rockford, IL -14.3% 24 56-8.8% -15.4% Chicago, IL -14.3% 24 56-8.8% -15.4% Wilmington, DE -16.2% 57 83-12.2% -17.0% July 2014 Rates, Forecasting and Load Research 6
Table 4 2014 National Rate Survey 10 Lowest and Highest Bills Residential: h 10 Lowest Bills 10 Highest Bills Rank City Bill Change Rank City Bill Change 1 Seattle, WA $37.26 7.5% 97 Springfield, MA $93.44 10.5% 2 Tulsa, OK $41.30 10.9% 98 Cambridge, MA $95.77 21.3% 3 Tacoma, WA $42.46 3.5% 99 Boston, MA $95.80 13.5% 4 Spokane, WA $44.33 4.0% 100 Waterbury, CT $96.83 13.1% 5 Austin, TX $47.25 5.7% 101 San Diego, CA $98.93 11.2% 6 Springfield, MO $48.40 1.1% 102 Hempstead, NY $107.16-2.2% 7 Duluth, MN $48.52 2.4% 103 Bridgeport, CT $111.28 4.4% 8 Shreveport, LA $48.62-2.1% 103 New Haven, CT $111.28 4.4% 9 Little Rock, AR $49.94-9.0% 105 Honolulu, HI $176.84 5.1% 10 Baton Rouge, LA $49.95 15.0% 106 New York City, NY $180.48 29.2% Residential: h 10 Lowest Bills 10 Highest Bills Rank City Bill Change Rank City Bill Change 1 Tacoma, WA $79.42 3.7% 97 Cambridge, MA $184.66 22.3% 2 Tulsa, OK $80.96 11.1% 98 Springfield, MA $184.87 10.6% 3 Spokane, WA $83.06 4.7% 99 Boston, MA $185.16 14.1% 4 Springfield, MO $85.71 0.5% 100 Hempstead, NY $203.33-3.7% 5 Shreveport, LA $90.13-4.0% 101 New Haven, CT $206.07 4.4% 6 Little Rock, AR $92.75-9.6% 101 Bridgeport, CT $206.07 4.4% 7 Lexington, KY $93.48 7.4% 103 San Francisco, CA $251.17 5.4% 8 Wheeling, WV $93.83-3.0% 104 San Diego, CA $281.22 22.6% 9 Huntsville, AL $93.98 2.6% 105 New York City, NY $344.48 31.0% 10 Baton Rouge, LA $94.08 16.0% 106 Honolulu, HI $348.70 5.2% Commercial: 40 kw and 10,000 kwh 10 Lowest Bills 10 Highest Bills Rank City Bill Change Rank City Bill Change 1 Tulsa, OK $720 13.7% 96 New Haven, CT $1,772 7.1% 2 Boise, ID $750 17.7% 96 Bridgeport, CT $1,772 7.1% 3 Seattle, WA $764 6.7% 98 Waterbury, CT $1,775 10.6% 4 Tacoma, WA $773 4.6% 99 Springfield, MA $1,798 12.1% 5 Little Rock, AR $775-11.2% 100 San Francisco, CA $1,830 4.8% 6 Lincoln, NE $784 3.0% 101 Boston, MA $1,879 8.7% 7 Colorado Springs, CO $820-0.2% 102 Hempstead, NY $1,943 3.6% 8 Reno, NV $824 2.7% 103 Pawtucket, RI $1,983 25.6% 9 Omaha, NE $842 0.0% 104 San Diego, CA $2,077 10.7% 10 Des Moines, IA $848 3.8% 105 New York City, NY $3,227 34.3% Commercial: 40 kw and 14,000 kwh 10 Lowest Bills 10 Highest Bills Rank City Bill Change Rank City Bill Change 1 Tulsa, OK $949 14.8% 96 Bridgeport, CT $2,232 6.1% 2 Boise, ID $953 20.0% 96 New Haven, CT $2,232 6.1% 3 Des Moines, IA $984 2.6% 98 Springfield, MA $2,269 12.5% 4 Little Rock, AR $1,001-12.0% 99 Waterbury, CT $2,280 11.5% 5 Davenport, IA $1,052 3.0% 100 Boston, MA $2,322 8.6% 6 Seattle, WA $1,070 7.0% 101 San Francisco, CA $2,350 4.7% 7 Springfield, MO $1,074 0.8% 102 San Diego, CA $2,401 9.3% 7 Lincoln, NE $1,074 2.7% 103 Hempstead, NY $2,543 3.8% 9 Tacoma, WA $1,078 4.7% 104 Pawtucket, RI $2,610 27.1% 10 Reno, NV $1,085 2.1% 105 New York City, NY $4,011 37.4% July 2014 Rates, Forecasting and Load Research 7
Table 4 2014 National Rate Survey 10 Lowest and Highest Bills Commercial: and 150,000 kwh 10 Lowest Bills 10 Highest Bills Rank City Bill Change Rank City Bill Change 1 Tulsa, OK $8,910 21.9% 97 San Francisco, CA $25,571 4.6% 2 Des Moines, IA $9,096 1.9% 98 Pawtucket, RI $25,839 26.5% 3 Tacoma, WA $9,191 4.6% 99 San Diego, CA $27,011 10.2% 4 Seattle, WA $10,180 6.5% 100 New Haven, CT $27,454 15.4% 5 Boise, ID $10,612 19.1% 100 Bridgeport, CT $27,454 15.4% 6 Little Rock, AR $10,908-12.2% 102 Hempstead, NY $27,889 3.7% 7 Davenport, IA $10,922 2.8% 103 Waterbury, CT $28,297 29.5% 8 Erie, PA $11,622-18.1% 104 Boston, MA $28,488 16.3% 9 Shreveport, LA $11,632-1.5% 105 New York City, NY $44,747 36.5% 10 Raleigh, NC $11,704 2.1% 106 Honolulu, HI $49,675 9.9% Commercial: and 180,000 kwh 10 Lowest Bills 10 Highest Bills Rank City Bill Change Rank City Bill Change 1 Des Moines, IA $10,008 1.4% 97 San Francisco, CA $28,333 4.7% 2 Tulsa, OK $10,034 23.7% 98 San Diego, CA $29,362 9.4% 3 Tacoma, WA $10,322 4.6% 99 Pawtucket, RI $30,318 26.5% 4 Little Rock, AR $11,934-13.1% 100 New Haven, CT $31,576 15.3% 5 Davenport, IA $11,984 2.1% 100 Bridgeport, CT $31,576 15.3% 6 Seattle, WA $11,998 6.6% 102 Boston, MA $32,143 17.9% 7 Boise, ID $12,129 20.3% 103 Hempstead, NY $32,320 3.9% 8 Shreveport, LA $13,128-3.5% 104 Waterbury, CT $32,584 34.8% 9 Lexington, KY $13,156 7.7% 105 New York City, NY $50,632 38.2% 10 Oklahoma City, OK $13,191 12.4% 106 Honolulu, HI $57,143 9.8% Industrial: and 15,000 kwh 10 Lowest Bills 10 Highest Bills Rank City Bill Change Rank City Bill Change 1 Tulsa, OK $1,064 14.0% 96 New Haven, CT $2,820 7.6% 2 Seattle, WA $1,072 6.2% 96 Bridgeport, CT $2,820 7.6% 3 Tacoma, WA $1,135 4.4% 98 San Francisco, CA $2,823 5.0% 4 Lincoln, NE $1,146 2.5% 99 Pueblo, CO $2,916 13.3% 5 Colorado Springs, CO $1,220-0.2% 100 Burlington, VT $2,931 0.0% 6 Boise, ID $1,221 14.5% 101 Pawtucket, RI $2,986 25.0% 7 Des Moines, IA $1,228 3.6% 102 Hempstead, NY $3,044 3.4% 8 Little Rock, AR $1,243-10.6% 103 Boston, MA $3,283 9.1% 9 Reno, NV $1,291 3.7% 104 San Diego, CA $3,539 11.7% 10 Shreveport, LA $1,371 3.8% 105 New York City, NY $4,843 36.0% Industrial: and 30,000 kwh 10 Lowest Bills 10 Highest Bills Rank City Bill Change Rank City Bill Change 1 Tacoma, WA $1,700 4.5% 97 Springfield, MA $4,569 7.9% 2 Des Moines, IA $1,894 1.7% 98 New Haven, CT $4,652 3.3% 3 Tulsa, OK $1,932 15.6% 98 Bridgeport, CT $4,652 3.3% 4 Seattle, WA $1,982 6.7% 100 San Diego, CA $4,755 8.8% 5 Boise, ID $1,985 18.5% 101 San Francisco, CA $4,772 4.7% 6 Davenport, IA $2,014 2.2% 102 Boston, MA $4,946 8.7% 7 Lincoln, NE $2,058 3.1% 103 Hempstead, NY $5,294 3.9% 8 Little Rock, AR $2,090-12.3% 104 Pawtucket, RI $5,316 28.1% 9 Shreveport, LA $2,119-4.5% 105 New York City, NY $7,760 41.9% 10 Springfield, MO $2,132 0.5% 106 Honolulu, HI $9,162 4.4% July 2014 Rates, Forecasting and Load Research 8
Table 4 2014 National Rate Survey 10 Lowest and Highest Bills Industrial: and 50,000 kwh 10 Lowest Bills 10 Highest Bills Rank City Bill Change Rank City Bill Change 1 Des Moines, IA $2,363-1.0% 97 Cambridge, MA $6,575 16.2% 2 Tacoma, WA $2,454 4.5% 98 Bridgeport, CT $6,621 2.5% 3 Lincoln, NE $2,668 4.0% 98 New Haven, CT $6,621 2.5% 4 Davenport, IA $2,722 0.4% 100 Springfield, MA $6,926 7.8% 5 Tulsa, OK $2,848 18.0% 101 Boston, MA $7,164 8.5% 6 Little Rock, AR $2,932-14.3% 102 San Francisco, CA $7,371 4.6% 7 Springfield, MO $2,958 0.1% 103 Hempstead, NY $8,294 4.2% 8 Norfolk, VA $2,980-3.0% 104 Pawtucket, RI $8,423 29.6% 8 Richmond, VA $2,980-3.0% 105 New York City, NY $11,648 45.4% 10 Lexington, KY $2,998 6.3% 106 Honolulu, HI $14,631 4.6% Industrial: and 200,000 kwh 10 Lowest Bills 10 Highest Bills Rank City Bill Change Rank City Bill Change 1 Seattle, WA $13,566 4.5% 97 Burlington, VT $38,816 0.0% 2 Tulsa, OK $13,794 18.3% 98 Waterbury, CT $40,239 23.6% 3 Des Moines, IA $14,433 2.8% 99 San Francisco, CA $40,321 4.0% 4 Tacoma, WA $14,566 4.6% 100 Hempstead, NY $40,708 3.4% 5 Erie, PA $14,780-14.4% 101 Bridgeport, CT $42,667 10.3% 6 Cleveland, OH $15,783 4.9% 101 New Haven, CT $42,667 10.3% 7 Boise, ID $15,922 14.3% 103 Boston, MA $44,555 30.8% 8 Rockford, IL $16,548-15.9% 104 San Diego, CA $45,951 12.1% 8 Chicago, IL $16,548-15.9% 105 New York City, NY $63,972 36.8% 10 Davenport, IA $16,549 3.5% 106 Honolulu, HI $74,108 2.7% Industrial: and 400,000 kwh 10 Lowest Bills 10 Highest Bills Rank City Bill Change Rank City Bill Change 1 Des Moines, IA $21,009 1.0% 97 Cambridge, MA $61,148 29.5% 2 Tulsa, OK $21,286 25.1% 98 San Diego, CA $61,627 9.0% 3 Tacoma, WA $22,106 4.6% 99 Pawtucket, RI $66,519 27.1% 4 Davenport, IA $24,049 2.0% 100 Bridgeport, CT $66,953 12.0% 5 Boise, ID $24,906 19.0% 100 New Haven, CT $66,953 12.0% 6 Little Rock, AR $25,155-13.6% 102 Waterbury, CT $67,861 29.4% 7 Oklahoma City, OK $25,462 11.6% 103 Boston, MA $68,923 18.9% 8 Seattle, WA $25,626 4.8% 104 Hempstead, NY $70,247 4.0% 9 Lexington, KY $25,705 7.1% 105 New York City, NY $102,859 42.5% 10 Erie, PA $26,169-16.6% 106 Honolulu, HI $123,892 3.5% Industrial: and 650,000 kwh 10 Lowest Bills 10 Highest Bills Rank City Bill Change Rank City Bill Change 1 Des Moines, IA $26,554-1.1% 97 Springfield, MA $89,339 1.5% 2 Little Rock, AR $30,192-17.1% 98 Cambridge, MA $91,708 33.3% 3 Tulsa, OK $30,651 29.3% 99 Bridgeport, CT $97,311 13.0% 4 Tacoma, WA $31,531 4.6% 99 New Haven, CT $97,311 13.0% 5 Davenport, IA $33,425 1.0% 101 Boston, MA $99,383 22.8% 6 Lexington, KY $34,609 6.4% 102 Waterbury, CT $102,389 32.5% 7 Norfolk, VA $35,574-0.6% 103 Pawtucket, RI $103,845 27.0% 7 Richmond, VA $35,574-0.6% 104 Hempstead, NY $107,170 4.2% 9 Oklahoma City, OK $36,059 13.6% 105 New York City, NY $151,468 45.6% 10 Boise, ID $36,135 21.8% 106 Honolulu, HI $186,121 4.0% July 2014 Rates, Forecasting and Load Research 9
Chart B 2014 National Rate Survey $500 $400 Sample Ranges of Residential Bills $348.70 Dollars $300 $200 $100 $41.30 $54.22 $63.43 $176.84 $80.96 $94.09 $116.38 $0 h h Tulsa, OK Status #1 Lincoln, NE Status #13 Overland Park, KS Status #53 Honolulu, HI Status #106 Sample Ranges of Commercial and Industrial Bills Dollars (Thousands) $20 $16 $12 $8 $4 $0.72 $0.78 $1.15 $3.28 $0.95 $1.07 $1.42 $4.38 $1.06 $1.15 $1.88 $5.06 $1.93 $2.06 $2.86 $9.16 $2.85 $2.67 $4.10 $14.63 $0 40 kw 10,000 kwh 40 kw 14,000 kwh 180,000 kwh 15,000 kwh 180,000 kwh Tulsa, OK Status #1 Lincoln, NE Status #13 Overland Park, KS Status #53 Honolulu, HI Status #106 Sample Ranges of Commercial and Industrial Bills Dollars (Thousands) $250 $200 $150 $100 $50 $8.91 $14.30 $14.45 $49.68 $10.03 $15.11 $16.25 $57.14 $13.79 $24.58 $23.35 $74.11 $21.29 $29.83 $34.84 $123.89 $30.65 $36.40 $46.65 $186.12 $0 150,000 kwh 180,000 kwh 200,000 kwh 400,000 kwh 650,000 kwh Tulsa, OK Status #1 Lincoln, NE Status #13 Overland Park, KS Status #53 Honolulu, HI Status #106 July 2014 Rates, Forecasting and Load Research 10
Chart C 2014 National Rate Survey Average Bill Per State: Residential h WA $85 OR $107 NV $125 CA $229 MT $108 ID $97 ND $98 AZ $113 MN $119 SD $116 WY $134 UT $109 NH $166 ME VT $159 $146 IA $111 NE $102 LES $94 CO $121 MO $99 KS $118 OK $90 NM $126 AR $92 LA $96 TX $116 AK $147 WI $143 MI $131 July 2014 Rates, Forecasting and Load Research $105 - $120 PA $136 OH IN IL $126 WV VA $108 $128 $93 $108 KY $96 NC $110 TN $101 SC GA $109 AL MS $114 $103 $109 MA $184 CT $196 RI $170 NJ $170 MD $142 DE $124 DC $129 FL $112 HI $348 Under $105 NY $228 $121 - $135 11 Over $135 LES U.S. Average Muni. Average IOU Average - $94.09 $129.61 $116.10 $132.95
Average Bill Per State (Thousands): Industrial and 400,000 kwh OR $30 CA $57 WA $27 AK $49 ID $24 NV $37 UT $32 AZ $34 HI $123 MT $31 WY $43 CO $34 NM $36 ND $31 SD $33 NE $28 LES $30 MN $34 IA $25 AR $25 IL $35 IN $35 KS MO $35 $30 KY $26 TX $39 OK $23 LA $30 WI $39 MS $30 MI $36 TN $36 AL $30 OH $34 GA $40 WV $28 PA $29 NC $30 SC $37 FL $37 NH $52 VT $56 NY $70 VA $28 ME $52 MA $63 CT $67 RI $66 NJ $48 MD $44 DE $34 DC $45 LES - $29,833 U.S. Average - $39,070 Under $30 $30 - $35 $36 - $40 Over $40 Muni. Average - $38,456 IOU Average - $39,222 July 2014 Rates, Forecasting and Load Research 12
Residential Real Price - h $120 $100 Pac SW Average Bill 82/84 Dollars $80 $60 $40 LES isin the West Central region. New England Mid Atlantic Central Ind. Rocky Mtn. West Central Southeast South Central Pac NW $20 $0 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Central Industrial Middle Atlantic New England Pacific Northwest Pacific Southwest Rocky Mountain South Central Southeast West Central The bills for 2011, 2012, and 2013 are for an average monthly bill. The bills for all years before 2011 use winter rates only. 1982/84 are the base years. Schedule 7 identifies in which region each city is located. July 2014 Rates, Forecasting and Load Research 13
Industrial Real Price - and 400,000 kwh $35 $30 Average Bill 82/84 Dollars $25 $20 $15 $10 New England Pac SW Mid Atlantic Central Ind. Rocky Mtn. Southeast West Central South Central Pac NW LES isin the West Central region. $5 $0 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Central Industrial Middle Atlantic New England Pacific Northwest Pacific Southwest Rocky Mountain South Central Southeast West Central The bills for 2011, 2012, and 2013 are for an average monthly bill. The bills for all years before 2011 use winter rates only. 1982/84 are the base years. Schedule 7 identifies in which region each city is located. July 2014 Rates, Forecasting and Load Research 14
Chart G 2014 National Rate Survey Residential Real Price - h LES Survey Avg. Investor-Owned Avg. Municipal Avg. $70 $60 $50 1.7% 1.7% 1.5% 2014 Rate Change $40 $30 3.5% $20 $10 $0 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 82/84 Dollars 2014 Industrial Real Price - and 400,000 kwh LES Survey Avg. Investor-Owned Avg. Municipal Avg. 82/84 Dollars (Thousands) $18 $16 $14 $12 $10 $8 $6 $4 5.0% 4.5% 2.9% 5.6% 2014 Rate Change $2 $0 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 July 2014 Rates, Forecasting and Load Research 15
Chart H 2014 National Rate Survey Highest Rank (106) Regional Rank Comparison Upper 25% Median Lower 25% Lowest Rank (1) 1 2 3 4 5 6 7 8 9 10 11 12 Colorado Springs, CO Des Moines, IA Kansas City, KS Kansas City, MO Lincoln, NE Minneapolis, MN Omaha, NE Wichita, KS Categories 1. Residential - h, without electric water heating 2. Residential - h, without electric water heating 3. Commercial - 40 kw and 10,000 kwh (35% Load Factor) 4. Commercial - 40 kw and 14,000 kwh (49% Load Factor) 5. Commercial - and 150,000 kwh (42% Load Factor) 6. Commercial - and 180,000 kwh (50% Load Factor) 7. Industrial - and 15,000 kwh (28% Load Factor) 8. Industrial - and 30,000 kwh (56% Load Factor) 9. Industrial - and 50,000 kwh (93% Load Factor) 10. Industrial - and 200,000 kwh (28% Load Factor) 11. Industrial - and 400,000 kwh (56% Load Factor) 12. Industrial - and 650,000 kwh (90% Load Factor) Note: LES ranks higher in the low load factor categories 5, 6, 10 and 11 due to a higher demand charge relative to the other utilities. LES has few customers in these categories. July 2014 Rates, Forecasting and Load Research 16
LES Ranks Compared to Nation The chart below displays LES' national ranking for lowest-cost electric utility bills at various usage levels. LES ranks in the lowest quartile for most usage levels ( ) and for all three summary categories ( ). (A): LES has few customers in this load factor category. Residential (All) h h Commercial and Industrial (All) 40 kw and 10,000 kwh 40 kw and 14,000 kwh and 150,000 kwh and 180,000 kwh and 15,000 kwh and 30,000 kwh and 50,000 kwh and 200,000 kwh (A) and 400,000 kwh and 650,000 kwh Company Overall 0% 10% 25% 50% 75% 100% Lowest to Highest Bills July 2014 Rates, Forecasting and Load Research 17
Lincoln Electric System has ranked U.S. cities (served by Municipals or Investor-owned Utilities) from the lowest (number 1) to the highest (number 106) based on average monthly electric bills by various categories of typical usage for residential, commercial, and industrial rates in effect January 1, 2014. Average bills are calculated using rates from the 12-month period to include seasonal rates. All bill data applies to one month of service. Kilowatt-Hour Usages Ranked The kilowatt hour (kwh) usage levels used in the ranking of average residential bills were: h h The average commercial bills were stratified by kilowatt (kw) and kilowatt-hour (kwh). categories used in the ranking are as follows: The 40 kw and 10,000 kwh (35% Load Factor) 40 kw and 14,000 kwh (49% Load Factor) and 150,000 kwh (42% Load Factor) and 180,000 kwh (50% Load Factor) The average industrial bills were stratified by kilowatt (kw) and kilowatt-hour (kwh). The categories used in the ranking are as follows: and 15,000 kwh (28% Load Factor) and 30,000 kwh (56% Load Factor) and 50,000 kwh (93% Load Factor) and 200,000 kwh (28% Load Factor) and 400,000 kwh (56% Load Factor) and 650,000 kwh (90% Load Factor) Selection Criteria For Cities Included In The Ranking LES originally selected cities in 1984 to be included in the ranking based on criteria shown below. Certain cities may not presently meet the selection criteria; however, they have continued to be included in the survey for purposes of comparability of results with prior years. Cities with a population greater than 100,000. Minimum of one city from every state. (If a state did not have a city meeting the population criteria, the state's largest city was selected.)
Maximum of three cities from any state. (If a state had more than three cities meeting the population criteria, three were selected at random; however, cities served by the same utility were not selected when possible.) Source Of Rate Data LES obtained the majority of the data for investor-owned utilities from the Rate Regulation Department of the Edison Electric Institute (EEI) publication, Typical Bills and Average Rates Report, Winter 2014, bills as of January 1, 2014. The data for municipal utilities and investor-owned utilities not included in the EEI publication was obtained through a survey conducted by LES. We performed no procedures to verify either the data obtained from the municipal utilities survey or the EEI publication. The results of the survey are presented in the attached schedules, which are listed below: Schedule numbers Listing of average annual residential and commercial bills arranged by state and city 1 Rankings of residential and commercial bills arranged by state and city 2 Listing of average annual industrial bills arranged by state and city 3 Rankings of industrial bills arranged by state and city 4 Index to utilities in the survey 5 Overall Ranks 6 Index to regions in the survey 7 July 2014
National Electric Rate Survey Schedule 1 M - Municipal or Public Power District I - Investor-owned utility Average Annual Residential and Commercial Bills Rates in Effect January 1, 2014 Arranged by State and City STATE CITY h h 40 kw 10,000 kwh 40 kw 14,000 kwh 150,000 kwh 180,000 kwh Alabama Birmingham (I) $ 67.85 $ 117.74 $ 1,276 $ 1,609 $ 17,443 $ 19,938 Huntsville (M) 51.43 93.98 980 1,368 13,989 15,715 Mobile (I) 67.85 117.74 1,276 1,609 17,443 19,938 Alaska Anchorage (M) 77.15 147.74 1,544 1,872 20,843 23,307 Arizona Mesa (M) 64.00 111.99 1,157 1,330 16,025 17,574 Phoenix (I) 67.74 124.56 1,493 1,757 16,482 17,920 Tucson (I) 54.61 104.14 1,201 1,680 15,726 17,191 Arkansas Little Rock (I) 49.94 92.75 775 1,001 10,908 11,934 California Los Angeles (M) 73.40 156.60 1,628 2,010 20,435 25,641 San Diego (I) 98.93 281.22 2,077 2,401 27,011 29,362 San Francisco (I) 77.13 251.17 1,830 2,350 25,571 28,333 Colorado Colorado Springs (M) 60.76 110.01 820 1,140 14,383 15,635 Denver (I) 57.55 107.07 1,189 1,348 15,312 16,498 Pueblo (I) 82.86 148.26 1,444 1,633 18,633 19,997 Connecticut Bridgeport (I) 111.28 206.07 1,772 2,232 27,454 31,576 New Haven (I) 111.28 206.07 1,772 2,232 27,454 31,576 Waterbury (I) 96.83 177.65 1,775 2,280 28,297 32,584 Delaware Wilmington (I) 67.45 124.02 1,167 1,390 14,919 16,383 District of Columbia Washington, DC (I) 67.53 129.97 1,413 1,950 20,190 23,341 1