Electricity Prices and Demand Rising

  1. Utilities continue to raise their price to provide electric power. The retail price per kwh increased 50% from 2001-2014. [1]
  2. Growth in electricity use estimated to grow 29% by 2040, despite conservation efforts. [2]
  3. Utility companies would have to invest $300 billion to build the estimated 347 Gigawatts of new capacity needed by 2030.
  4. Environmental compliance costs are rising. Aging fleet of polluting coal plants must be retired/replaced
  5. Cost for building traditional generating capacity and for environmental compliance will require further increases in consumer electric bills.

Notes:

[1] U.S.DOE, Energy Information Administration, “Average Retail Price of Electricity, Monthly”

[2] U.S DOE, Energy Information Administration, “Energy Markets and Projections” July 24, 2014