U.S. electricity prices rose 3.6% over the last 12 months, outstripping the broader inflation rate of 3.2%, the Bureau of Labor Statistics reported Tuesday. And experts say there is little chance for near-term consumer relief.
Transmission costs and volatile fuel prices are the primary drivers of higher power bills, according to Tyson Slocum, director of Public Citizen’s Energy Program. While natural gas prices have declined, “I’m not seeing any evidence that today’s current low prices are going to result in utilities announcing rate decreases,” he told Utility Dive.
And federal policies aimed at electrifying end uses and reducing emissions could lead to even higher prices, Travis Fisher, director of energy and environmental policy studies at the Cato Institute, told a House subcommittee Wednesday. Energy and environmental policies “are creating predictable problems with grid reliability and affordability,” he said.
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