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.
Author:
Katia Lundy
Sr. Director of Marketing & Communications
Plymouth Rock Energy
marketing programs, brand management and global marketing communications
