U.S. Reports Significant Rise in Electricity Costs
Retail residential electricity prices across the
U.S. rose in the first half of this year, averaging
12.3 per kilowatt hour, a 3.2 percent price hike
from the same period last year. This is the largest
six-month rise since 2009, the U.S Energy
Information Administration has reported.
Factors that affect
your electricity bill
There are two main components that contribute to
your electricity bill. The first is the generation
of electricity. And the second is the delivery of
your electricity, which encompasses transmitting and
distributing the electricity you need. Both
components can affect your electricity rates and
ultimately, your electricity bill will fluctuate to
reflect these variables.
The Energy Information Administration said also that
price increases are the result of the closing of a
number of coal plants across the country, because of
stricter regulations mandated by the U.S.
Environmental Protection Agency. The new regulations
placed limits on pollutants, air particles and
carbon dioxide emissions from coal plants. Such
moves are causing coal plants to be uneconomical to
operate.
What this means for
your electricity bill
Energy companies report that they are concerned a
winter such as the last one, coupled with plant
closings and an increase in demand, could overwhelm
the nation's energy supplies. Rates rose
nationwide last year as storms dumped snow on
virtually every region in the U.S., leaving supplies
short and making deliveries difficult if not
impossible in some spots.
The Solution
State consumers can avoid the rate hikes that are
forecasted for this winter and beyond. By signing up
for a fixed-rate plan offered by an independent
energy supplier, consumers will be aware of exactly
how much they will be charged on a monthly basis,
making planning easier and avoiding the predicted
price spikes. Experts say the best time to lock-in a
fixed price is in the spring or the fall, when
prices tend to drop as demand ebbs.
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