What factors can impact the price of electricity?
Hourly, market-based electricity prices typically change as the demand for electricity changes; prices tend to increase as demand rises. As a result, average prices tend to be higher on weekdays and lower on weekends and holidays, when some businesses and factories shut down. The weather can also impact the market price of electricity, particularly during the summer when air conditioner usage drives up demand for electricity. As a result, electricity prices tend to be highest on summer afternoons, and hot days tend to have higher overall prices than cooler days. During the winter, electricity prices may increase if the temperature drops suddenly and significantly or if an extended cold snap pushes up natural gas prices, which increases the cost of operating gas-burning power plants. Prices can sometimes increase in the spring or fall if a heat wave occurs during a time when some power plants are shut down for maintenance. There can also be unexpected and brief price spikes if multiple
