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Energy Pricing

Electricity and natural gas prices change every day. The chart shows how residential electricity prices have changed over the last twelve months.

Data Source: 5

Why are rates increasing?

Electricity and natural gas are traded like any other security or commodity. Prices are determined by forces of supply and demand and vary daily with market conditions. Energy prices can also be volatile and change in response to domestic news, foreign affairs and extreme weather events.

When most businesses shop for energy, they purchase a fixed-price contract, where the rate is fixed for a number of months/years. That rate is guaranteed for the duration of the contract term, regardless of how energy prices will vary into the future. One may think of this as purchasing energy price insurance.

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