Surging Wholesale Power Prices Signal Higher Retail Rates
June 21, 2022
Retail electricity prices are typically determined by longer-term contracts and regulations. Wholesale prices reflect more immediate supply/demand dynamics. If wholesale prices are any indication, we may see big retail price increases soon.
Natural Gas and Coal account for 38% and 22% of electric power in the US, respectively. Natural Gas prices remain high, and Coal plants are experiencing retirements, delivery challenges, and low stocks. Even regulated prices will reflect the supply constraints over time.
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