What is the spot market price?
With spot market pricing you pay actual wholesale market prices for electricity. These prices are volatile, fluctuating up and down every hour. Price is determined by market conditions and it changes every hour. Your electricity cost will be based on: • How much you use; • Your peak demand or how quickly you draw electricity from the system; and • The time of day and week you use it (if you have an interval meter). What factors influence the spot market price for electricity? There are many factors that influence pricing: • One is the season in which electricity is used – prices are generally higher in winter and summer than they are in the spring and fall. • Another is the time of day. Prices tend to be higher in late afternoon and early evening. • The source of electricity is another factor, some being more expensive to run than others. When demand for electricity is high, more expensive generation is needed to meet that demand, driving up the cost of power. How do I know if I will b
The spot market price is the cost to purchase natural gas on the open market on any given day. Natural gas is traded at a number of market points, known as hubs. For most consumers, the easiest way to track the market price of natural gas is through the New York Mercantile Exchange (NYMEX). The business section of most newspapers, such as The Wall Street Journal, publishes commodity prices. Also, for current information on Natural Gas Costs and Futures go to: http://www.eia.doe.gov.
