History of Electricity

Electricity costs have changed over the last 100 years.  Electricity prices have increased because of inflation, changes in electricity usage, higher energy prices, and varying availability of electricity over time. Here’s a summary of how electricity costs and usage have evolved over the past century:

1920s - 1940s:

• Early Adoption: In the 1920s, electricity was becoming more widely available, but usage was still limited. Monthly bills were relatively low, but electricity was also expensive compared to income levels at the time.
• Rural Electrification: The 1930s saw significant growth in electricity availability in rural areas, especially with initiatives like the Rural Electrification Act in the U.S.
• Typical Monthly Bill: A few dollars per month, equivalent to $30-$50 in today’s dollars, though usage was much lower.

1950s - 1970s:

• Post-War Boom: The post-war period saw a boom in appliance ownership and electricity use in homes, driving up monthly bills.
• Rising Demand: By the 1970s, most homes had multiple electric appliances, leading to higher consumption and bills.
• Typical Monthly Bill: Increased significantly, with average bills in the range of $10-$30 per month, equivalent to $100-$200 today.

1980s - 1990s:

• Energy Crisis Impact: The energy crisis of the 1970s led to higher energy prices, which continued into the 1980s. Conservation became more emphasized.
• Technological Advances: Improvements in energy efficiency began to offset some of the increased usage.
• Typical Monthly Bill: Averaged around $30-$60 per month, with regional variations.

2000s - 2020s:

• Steady Increase: Electricity bills have steadily increased due to rising energy costs, increased usage of electronic devices, and larger homes.
• Renewable Energy Impact: The rise of renewable energy sources like solar has started to influence overall electricity costs, though utility rates have continued to climb.
• Typical Monthly Bill: By the 2020s, average monthly bills in the U.S. ranged from $100 to $150 or more, depending on location, with the national average around $115-$130.

• Inflation Adjustment: It’s important to note that the real cost of electricity, when adjusted for inflation, has not risen as sharply as nominal costs. For example, while electricity bills in the 1920s might have been a few dollars, the buying power of those dollars was much greater.

• Usage Patterns: Over time, the increase in household electricity usage (more appliances, air conditioning, electronics) has driven up bills even as per-kilowatt-hour costs have fluctuated.

The cost of electricity has increased over the past century due to inflation, rising consumption, and changes in energy prices.  It is also projected that electricity costs will continue to increase in the coming decades.