Electricity Price Volatility in North Dakota
State Electricity Price Context
The average residential electricity rate in North Dakota is 11.92 ¢/kWh. This page focuses on how stable or volatile those prices have been over time.
5-Year Volatility
The 5-year volatility for North Dakota is 11.38% (rank #15 among states). This measures the coefficient of variation of monthly electricity rates over the last 5 years—higher values mean more fluctuation.
The national average volatility is about 10.26%. North Dakota's volatility is higher than the national average, meaning electricity prices in North Dakota have historically been more volatile than typical across the U.S.
What Can Cause Electricity Price Volatility
Possible drivers of electricity price volatility include:
- Fuel price changes — Natural gas, coal, and other fuel costs can swing with commodity markets.
- Extreme weather — Heat waves and cold snaps affect demand and can strain supply.
- Grid constraints — Transmission limits and congestion can cause regional price spikes.
- Market structure — Deregulated markets may see more price variation than regulated utilities.
Related Pages
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