Saturday, April 02, 2005

Power Consumption and Production in US

I thought it would be interesting to compare statistics of electric power consumption and consumption trends. I believe that prosperity can be directly tied to how much power a society uses and to what applications they apply that power.

I found a spread sheet that details power costs and consumption between residential, industrial, and commercial customers. I’ve discovered some stunning relations and trends in electric power consumption.


First the anomalies in power consumption;

1. DC; The District of Columbia, has the lowest industrial to residential power use of ANY state. The amount of non-productive power use in DC is stunning. The average ratio for all states in 2004 is 0.83, DC has an astonishingly low ratio of 0.03. Nothing of commercial value is produced in DC at all.

2. Kentucky has THE LOWEST power prices of ANY state. 4.60 cents per kwh. That’s lower than number 2 Wyoming at 4.96. Washington State comes in 5th on the list of cheap power states at 5.56. Kentucky gets it’s inexpensive power because they 1) Fight for it and keep thieves and scoundrels from looting their power system – court fights to keep the power inexpensive. 2) They have billions of tons of coal and they use it freely to produce power.

Note the most expensive power in the country is in Hawaii at 16 cents per kwh.

3. Wyoming has THE highest ratio of industrial to residential use of power. This makes Wyoming the most productive industrial state in the USA. The second, interestingly enough, is Kentucky! Notice that the two states with the lowest power rates are also the most productive industrial states in the nation.

Highest Production Ratio

In order the most productive States in the USA are;
1. Wyoming
2. Kentucky
3. Indiana
4. Iowa
5. Idaho
6. Alabama
7. South Carolina
8. Arkansas

Lowest Production Ratio

In order the least productive States in the USA are;
51. DC
50. Florida
49. New York
48. New Jersey
47. Massachusetts
46. Rhode Island
45. Connecticut
44. Arizona

Most Power Burned

Texas, California, and Florida burned the most electricity total with Texas, Ohio, and California burning the most power for industrial purposes. Of these three California is least efficient at converting electricity to wealth and Ohio is the most efficient.

On top though are Kentucky and Wyoming with the highest industry to consumer power use ratios. If you are thinking about moving your plant someplace look at these two states first for their affordable power and favorable business climates. South Carolina looks good except that they have a personal income tax making labor cost more.


The final score is;

In Last place, DC! they produce nothing, have no industry, and high power and tax rates. You can't get a job in DC because there is no industry to support a job.

In first place;
Go Wyoming! Lots of industry, no corporate or personal income tax, and affordable power.

In second place it’s Kentucky, Indiana, Iowa, Idaho, Alabama, or South Carolina depending on other factors you look for such as climate, open space, or labor force.

Lessons Learned

1. Inexpensive Power is the Key to prosperity.
2. Government consumes without actually producing anything.
3. Looking for job? Consider Wyoming which has more industry than people!

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