Electricity production costs rose with fuel costs in 2021, delivery cost remained elevated

After adjusting for inflation, costs for major U.S. utilities to produce electricity rose 6% in 2021 as a result of rising fuel costs. For a number of years, electricity production costs had declined as natural gas prices fell and new low-cost renewable generators came online. The cost to deliver electricity across transmission and distribution lines increased 12% in 2020 and remained steady in 2021.