What conditions cause market prices of electricity to fluctuate?
Changes in the price of electricity are driven by a number of factors, such as supply and demand, weather, and fuel prices and availability. How are the market prices calculated? For customers without interval meters, the actual price is a 30-day weighted average of the hourly electricity supply prices. In other words, we calculate a weighted average kilowatt-hour cost by averaging the prices for each hour of each day in the 30-day period. For example, if your meter is read on March 29, your weighted average price would be based on the previous 30 days’ prices. Do you know what the market prices for electricity will be in the future? No, because of the volatility in the market. We do have a record of the historical 30-day weighted average prices and corresponding Delivery Charge Adjustment factors. Note: Our posted historical prices by service classification and load zone are the ACTUAL prices since September 1, 1998. These prices are NOT A FORECAST of future prices. How much money can
