Rising costs in electric consumption and retail cost to produce are set to see a near 4.8% rise in household bills this summer. Depending on which side of the debate you fall on this is either an unnecessary consequence of President Obama’s energy policy, or an essential compromise to help check the rise in carbon emissions that will, in time, lead to an overall drop in electricity costs. Both sides of the debate make compelling arguments, but certainly in the short term the simple fact seems to be that if we continue to use more power, it has to be generated somewhere – and that costs money.
Let’s start with a look at current policy. EPA regulations have removed tens of thousands of kilowatts that were previously been generated by coal fired plants out of circulation. On top of this, and clearly because this power needs to be replaced from somewhere, new plants are needing to be constructed that operate to cleaner standards and use other sources of generation. Building new plants is naturally a very expensive investment – especially in newer technologies – so in a nutshell