SBE Council Releases Energy Cost Index Ranking the States

On April 7, the Small Business & Entrepreneurship Council (SBE Council) released the "Energy Cost Index 2009," which ranks the 50 states and District of Columbia according to key energy costs affecting business.

SBE Council's "Energy Cost Index 2009" looks at two major energy costs affecting small businesses, individuals and families: 1) the price of regular gasoline at the pump, and 2) the cost of electricity (average revenue per kilowatthour). Each are calculated as indices and combined into one index.

At the top - or the lowest cost states - are: 1) Wyoming, 2) Idaho, 3) Utah, 4) Kentucky, 5) West Virginia, 6) Missouri, 7) Nebraska, 8t) Indiana, 8t) Iowa, 8t) North Dakota, 11) South Dakota, 12t) Arkansas, 12t) Kansas, 12t) South Carolina, and 15) Oklahoma.

The highest cost states (including the District of Columbia) include: 37) Florida, 38) Delaware, 39) Vermont, 40) Maryland, 41t) District of Columbia, 41t) Maine, 43) New Jersey, 44t) California, 44t) New Hampshire, 46) Massachusetts, 47) Rhode Island, 48) Alaska, 49t) Connecticut, 49t) New York, and 51) Hawaii.

Raymond J. Keating, SBE Council chief economist and author of the report says that the costs of energy are impacted by a variety of factors, including economic growth, investment in exploration and development of resources, the particular energy resources being utilized (such as coal, natural gas or renewables), political risks (for example, in terms of risks to oil production at home and around the globe), and government mandates, regulations and taxes. Making energy more affordable and abundant should be a key objective for policymakers, according to Keating, if they want to help small businesses survive the current economic turmoil, and thrive once a recovery takes hold.

He observes: "In tough economic conditions such as these, elected officials at all levels of government need to be aware of how their policies impact energy costs, and in turn small businesses. Higher taxes and increased regulations and mandates only add to the cost burdens of entrepreneurs, and negatively affect a state's competitiveness and economy."

According to Keating, the Index will help elected officials determine how their state stacks up against the others. The full report can be read on SBE Council's website by clicking here.