Understanding Electricity Rate Increases
• Electricity rates have been rising throughout the country. These increases are largely a result of rising costs for the fuel used by generators to produce electricity. In fact, fossil fuel costs have increased over 150 percent since 1999.
• Fuel costs are rising due to global demand for fossil fuels, the impact of supply interruptions from last year’s hurricanes, and insufficient domestic production.
• Despite this pressure, if you look at price increases over the same time-frame in other consumer goods like food, housing and health care, you will find that electricity price increases are mostly modest by comparison. Electricity rates are not rising because of competition.
