U.S. sees 9.8% spike in '09 electric bills
Electricity forecast for 2009 is up sharply from last month; increase in price of natural gas a factor.
NEW YORK (CNNMoney.com) -- Americans may face dramatically higher electric
bills next year, according to a government report released Tuesday.
The U.S. Energy Information Administration forecast that electricity prices
will climb an average of 9.8% in 2009. Only a month ago, the agency was
forecasting a 3.6% increase for next year.
The new forecast projects that electricity prices will climb 5.2% in 2008,
an increase of nearly 1.5 times the projected 3.7% increase that was forecast in
June.
"Within the past few weeks, a number of utilities have requested permission
from state regulators to raise electricity rates in response to rapidly
increasing delivered fuel costs for power generation," EIA wrote. "It is likely
that most other utilities will soon need to pass through these increased costs
to retail customers as well."
The increase in price of natural gas is a main factor in the projected jump
in electricity prices, according to Tancred Lidderdale, an EIA economist. He
said natural gas makes up about 20% of the price of electricity.
The EIA reports that many utilities have requested permission from state
regulators to raise electricity rates in response to the increased cost of
generating power.
Find this article at:
http://money.cnn.com/2008/07/08/news/economy/electricity_prices/index.htm?postversion=2008070817
Find this article at:
http://money.cnn.com/2008/07/08/news/economy/electricity_prices/index.htm?postversion=2008070817
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