Agricultural Economics Department

 

Date of this Version

August 2001

Comments

Published in Cornhusker Economics. August 29, 2001. Produced by the Cooperative Extension, Institute of Agriculture and Natural Resources, Department of Agricultural Economics, University of Nebraska - Lincoln.

Abstract

Energy prices have risen dramatically in the last two years, with changes also taking place in relative prices between energy sources. Representative prices paid for three major energy alternatives over the last five years are reported below in Table 1. Actual prices paid have also varied considerably depending upon when the fuel was purchased during the year and the supplier. The cost of natural gas (not reported here) and electricity, are complicated with total energy supply costs that depend upon both consumption and annual connect charges. Electricity rates also depend upon the frequency of interruption of service selected. The total cost for electricity for irrigation (including consumption and connect charges) averaged about 8.8 cents per KWH in Nebraska in 2001. The rates reported in Table 1 are for anytime interruptible which is the most economical rate. The Southern Power rates reported in Table 1 are also some of the lowest in the state.

Share

COinS