Energy In-depth: Consumer Price Index shows energy commodity prices down 20.9% over past year

Editor’s note: Each Friday, Talk Business & Politics provides “Energy In-depth,” a round-up of energy and regulatory news.

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CONSUMER PRICE INDEX: ENERGY COMMODITY PRICES DOWN 20.9% OVER PAST YEAR

Over the 12 months ended in February 2016, the Consumer Price Index for All Urban Consumers (CPI-U) increased one percent (not seasonally adjusted), a smaller increase than the 1.4% change for the 12 months ending January according to the newly calculated estimates by the U.S Bureau of Labor Statistics. Prices of energy commodities, which include gasoline, propane, and kerosene, decreased 20.9%. The energy services index, which includes electricity and piped gas service, declined 4.6%. The overall energy index, made up of commodities and services, declined 12.5%.

The food at home index declined 0.3% over the 12-month period ended in February 2016. The index for food away from home increased 2.6%. As a whole, food prices increased 0.9% from February 2015 to February 2016. The index for shelter, which accounted for 33.2% of consumer spending, increased 3.3% over the 12-month period ending in February 2016.

ENGINE DESIGN TRENDS LEAD TO INCREASED DEMAND FOR HIGHER-OCTANE GASOLINE

Since 2013, the share of premium gasoline in total motor gasoline sales has steadily increased, reaching 11.3% in August and September 2015 – the highest share in over a decade. While lower gasoline prices may be supporting demand for premium gasoline, the upward trend in sales is more likely driven by changes in fuel requirements for light-duty vehicles (LDV) in response to increasing fuel economy standards, which will have widespread implications for future gasoline markets, the U.S. Energy Information Administration recently concluded.

SWEPCO GETS ENERGY STAR RATING FROM EPA

The U.S. Environmental Protection Agency (EPA) has recognized AEP Southwestern Electric Power Co. (SWEPCO) with a 2016 ENERGY STAR Partner of the Year – Energy Efficiency Program Delivery Award – for the company’s program in Arkansas. This is the second year in a row SWEPCO has received the ENERGY STAR recognition.

The award recognizes SWEPCO’s implementation of the Home Performance with ENERGY STAR (HPwES) program in Arkansas, which promotes the use of ENERGY STAR-certified products and technologies that help improve home energy performance. During 2015, SWEPCO’s Arkansas program generated approximately 5.6 gigawatt hours (GWh) in energy savings, an increase of 238% over 2014. With restructured incentives and other changes, 767 single-family homes were completed for 1.8 GWh in energy savings. SWEPCO also began working with multi-family properties in the HPwES program, resulting in 811 units completed for 3.8 GWh in energy savings.

The HPwES program offers qualifying residential customers no-cost home energy assessments and necessary energy-efficient improvements that may include ceiling insulation, wall insulation, duct sealing, air sealing, and direct-installed measures such as CFL and LED bulbs, energy-saving showerheads and faucet aerators, and advanced power strips.