While a plunge in the price of natural gas makes it cheaper for utilities to produce electricity, the electricity rates aren’t lowering for customers. Instead, U.S. electricity prices are going up, and expected to rise during this summer.
Analysts at the Department of Energy attribute the rising electricity prices to several factors:
“In many states, retail electricity rates are set by regulators every few years. As a result, lower power costs haven’t yet made their way to customers.
Utilities often lock in their costs for natural gas and other fuels years in advance. That helps protect customers when fuel prices spike, but it prevents customers from reaping the benefits of a price drop.
The cost of actually delivering electricity (40% of a customer’s bill, on average) has been rising fast.”
The average electricity price is expected to rise up 2.4 percent from the same time last year. For the full year, electricity prices are expected to rise 2 percent.
For businesses in commercial buildings, the costs are sure to increase. Retrofitting your lighting system today is one of the most cost-effective ways to reduce electric bills, and many businesses are getting with the program.
If it’s time for your company to start saving money, schedule a facility review with us today.
Source: Associated Press