Outlook data for 2015 released by the U.S. Energy Information Administration indicates the average price of electricity for residential customers across the U.S. will be at its lowest this January.
What does that mean for you? It means if you are looking to purchase a new supply plan for your home in the new year, now is the time to take advantage of competitive energy rates and lock in a fixed-rate supply plan that will keep your supply rate steady for the coming months or even multiple years.
According to the EIA website, since at least 2002 the cost of electricity charged to residential customers has increased from year to year. Whereas in 2002 consumers in the U.S. were paying on average 8.45 cents/kWh, that number steadily rose to 12.48 cents/kWh in 2014.
This trend will continue in 2015 as the average price is predicted to reach 12.70 cents/kWh, dependent upon a number of key variables in the energy market. Along with the obvious that rising global temperatures lead to cranked cooling systems and a greater demand for energy in the summer months (a demand which is typically met by more expensive forms of generation), other contributing factors include severe weather conditions, availability of power plants in a locality and the costs of fuels needed by those power plants to generate electricity.
Numbers compiled by the EIA in 2013 demonstrate that the majority (roughly 58%) of the price you pay each month for your electricity bill consists of generation costs. Throughout a single day, the wholesale price of electricity varies minute by minute in response to real-time demand, peaking in the afternoon and early evening. For consumers with fixed-rate supply plans, these fluctuations are not experienced.
At the start of this new year, you can protect yourself and your family from the steady rise in residential electricity prices by locking in a new supply rate with a retail supplier operating in your area. Take a look at the options available to you today.