California commercial electricity rates

Analyst note

The California commercial price sat above the U.S. average in 10 of 10 years; the gap was +5.09 ¢ in 2015 and +12.79 ¢ in 2024. In the 2024 ranking California sits between Hawaii (38.18 ¢) one place above and Alaska (21.57 ¢) one place below; the top of the list is 12.64 ¢ away and the bottom 18.35 ¢. California was 6th in 2015 with 15.73 ¢ and is 2nd now; a rise in the table. California commercial prices rose in 8 of 9 years. The largest rise was +13.7% in 2022, and the largest fall -4.2% in 2016. The California price peaked at 25.54 ¢ in 2024 and bottomed at 15.07 ¢ in 2016; 2024 is the peak and +69.5% from the low. Compounded, that is +5.53% a year in California, +3.50 points against the U.S. California buys 7.93% of all U.S. commercial electricity with 9.12% of the accounts, so the average California account uses 0.87 times the national average.

A top-ten price: 25.54 ¢/kWh for California commercial accounts, rank 2 of 51, +100.3% against the U.S. California: +62.4% over nine years, or +5.5% a year, beating the national +19.8% by 42.5 points; 2022 was the biggest single move (+13.7%) and 2024 the high.

Last year's change in California was +6.8% and still rising. Against the residential price of 31.97 ¢ the gap is 6.43 ¢. Commercial sales are 46.9% of California electricity sold, and an average California account used 5,398 kWh a month, an implied bill near $1,379.

Counting revenue instead of kWh, California commercial accounts bring in 44.3% of California sector revenue on 47.0% of the kWh, a discount of 2.7 points that comes from the price level: 25.54 ¢ here against 31.97 ¢ for residential and 21.53 ¢ for industrial accounts. The average California commercial account uses 5,398 kWh a month, 28 of 51 among states on that measure; a residential account uses 0.09 times as much and an industrial account 4.64 times. Commercial accounts are 11.01% of the 16,140,812 accounts in California.