Why are Energy Prices Rising?
Some of the factors that are contributing to the rise in electric energy costs are as follows: • Demand for electricity is growing at an ever-increasing rate. The Energy Information Administration estimates that 258 gigawatts of new electric generating capacity will be needed by 2030 to meet the growing demand. This equates to an additional 250 to 500 baseload power plants rated at between one-half and one gigawatt of capacity. • Infrastructure costs are increasing. The cost of maintaining the nation’s electric power grid including high-voltage transmission lines and towers, power sub-stations, and electric distribution systems is advancing in an upward trajectory. In a three year period ending with 2009, electric utility companies will need to invest $31.5 billion, a 60 percent increase over the three years from 2002 to 2005. For the next ten years electric utilities will invest $14 billion per year on infrastructure. • Compliance with environmental laws and regulations and related li
