# Big drop in electricity prices



## Stentor (Aug 14, 2009)

There is a drop in electricity prices, not just natural gas. What that means for alternative energy and conservation is unclear. It buys more time to reduce demand and find other sources of energy but also reduces incentive to use less.

Here's the link to today's Wall Street Journal story:


http://online.wsj.com/article/SB125003563550224269.html


And here are some excerpts:

_'Slack demand for electricity across the U.S. is leading to some of the sharpest reductions in power prices in recent years, offering a break for consumers and businesses who just a year ago were getting crunched by massive electricity bills.

On Friday, the nation's largest wholesale power market serving parts of 13 states east of the Rockies is expected to report that electricity demand fell 4.4% in the first half of the year. That helped to push down spot market prices by 40% during the first half of this year.

Dramatic price reductions don't immediately mean lower power bills for all consumers. That's because many customers pay prices based on long-term contracts. But lower prices will have a softening effect over time.

Some wonder whether the deregulated markets of the Eastern U.S., Midwest, Texas and California will be especially hard hit if demand comes roaring back. That's because utilities in these markets no longer are required to build new resources. It's left up to the power generators to determine when the market conditions are ripe.
"There's more supply than demand and prices are really low so it doesn't make sense to build anything," says John Shelk, president of the Electric Power Supply Association in Washington, D.C., a group that represents power generators.

Many electricity markets throughout the country have implemented demand reduction programs that give consumers a further incentive to reduce power use. The 13-state PJM Interconnection market has been one of the most aggressive -- and has seen one of the steepest price drops.'_


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## EatenByLimestone (Aug 14, 2009)

Note to self:


Hurry up and raise taxes on electricity supply and delivery.

Signed,
Your Local and State Politician


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## cncpro (Aug 14, 2009)

Connecticut Light & Power must have forgotten to reduce my bill.


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## SolarAndWood (Aug 14, 2009)

I'm waiting to hear the story that National Grid is demanding an audience with the Public Service Commision to pass that along to their customers.


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## blades (Aug 14, 2009)

WE energies is still asking for price increases, gas and electric. Wisconsin


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## TreePapa (Aug 14, 2009)

I'm waitin' for the Los Angeles Dept. of Water and Power to lower their rates. But I'm not holdin' my breath.

Peace,
- Sequoia


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## Delta-T (Aug 14, 2009)

I wonder how much of this 4.4% decrease in demand is fueled by the decrease/screaming halt in manufacturing (hence low power consumption), and not necessarily indicative of conservation or efficiency increases.


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## daveswoodhauler (Aug 14, 2009)

Delta-T said:
			
		

> I wonder how much of this 4.4% decrease in demand is fueled by the decrease/screaming halt in manufacturing (hence low power consumption), and not necessarily indicative of conservation or efficiency increases.



bingo....+100...couldn't agree more.

Also, we have dropped our consumption of electricty in our house by appx 15% from last year, and many others I know have done the same....problem is the Utility companies all have mouths to feed, so the effect of being greener is an increase in rates due to decreased output....sucks either way


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## BrotherBart (Aug 14, 2009)

Delta-T said:
			
		

> I wonder how much of this 4.4% decrease in demand is fueled by the decrease/screaming halt in manufacturing (hence low power consumption), and not necessarily indicative of conservation or efficiency increases.



That and because NG rates came down faster than electric a lot of manufacturing switched off to NG.

Our brilliant electric co-op board has wanted to get out of their agreement with their power supplier for years and finally did it last fall. The reason they wanted out was because the supplier depended a lot on NG and spot purchases of power. Now that they have us locked into coal fired plants on long term base load and demand agreements NG and spot prices have dropped through the floor.

I can't wait for the annual meeting next month.  :coolsmirk:


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## Dix (Aug 15, 2009)

LILCO/LIPA gave us a 2. something rate reduction due to lower oil pricing. Course the price of oil came down more than 2.whatever percent, but who's counting  :smirk: 

I'm on a budget plan, and electric was costing me $198 per month. I'm anxiously awaiting my new budget amount, as I have a $400 credit on my budget plan, and they STILL wanted last months $$$'s, or they would shut me off. Go figure.

Oh, and I reset on the budget next month. Should be interesting.


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## billb3 (Aug 15, 2009)

I'm sure Nstar Electric will find a way to spin it into another rate increase.


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## BrotherBart (Aug 15, 2009)

Recent news on electric rates:

"Allegheny Energy seeks 14 pct rate hike in W.Va."

"AEP-PSO wants increase"

"Energy rate hike an electric shock:"

"Public Utility Commission approves $115 million rate hike for Oncor"

"South Carolina Electric & Gas Co. also has filed a rate increase request with ..."

"Atlantic City Electric aims for 4.2% rate hike"

"Duke Seeks 9.3% Electric Rate Increase In South Carolina"

"Report coming on OMU rate increase"

"The Central Hudson Gas & Electric Corporation submitted its proposed price increases"

There are hundreds of articles and headlines like these. I wouldn't be looking for your electric rates to go down any time soon. Or ever for that matter.


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## Wet1 (Aug 17, 2009)

cncpro said:
			
		

> Connecticut Light & Power must have forgotten to reduce my bill.


Well then they forgot me as well because I don't recall ever seeing them drop rates for any reason.


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## Tom Pencil (Aug 18, 2009)

Dayton, Power and Light raised ours by $10/month to cover there losses from Septembers wind storm that caused millions in damages to power lines.  I was one of the lucky ones with no loss of power.  Some people were without power for weeks.  I would think that electric companies would have insurance in case something catastrophic came along such as what happened in sept. of 08.  I carry insurance on my home.  I guess I'm paying for theirs also?


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## RobinGoodfellow (Aug 22, 2009)

Delta-T said:
			
		

> I wonder how much of this 4.4% decrease in demand is fueled by the decrease/screaming halt in manufacturing (hence low power consumption), and not necessarily indicative of conservation or efficiency increases.



Correct.  Also the East has had a mild summer.


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