Rising Natural Gas Prices Make Electricity More Expensive Nationwide
Average wholesale electricity prices jumped in the first half of 2013 compared to 2012, according to the Energy Information Administration. The EIA reports that the increase is linked to the rising price of natural gas, which has gone up 40 percent to 60 percent this year compared to the first six months of 2012. The price jump for natural gas was caused by colder winter temperatures, lower production, and reduced storage inventories.
“Average on-peak, day-ahead wholesale electricity prices rose in every region of the Lower 48 states in first-half 2013 compared to first-half 2012. The most important factor was the rise in the price of natural gas in 2013 compared to 10-year lows in April 2012. However, the increase in power prices was not uniform across markets as regional natural gas supply issues drove larger increases in the Northeast and Pacific Northwest.” — EIA