Why Is Electric So Expensive Now?

Why Is Electric So Expensive Now?

Electricity is expensive for a variety of reasons.

First, the cost of natural gas and coal, which are used to generate electricity, has risen in recent years.

Second, the cost of environmental compliance has gone up, as utilities must now install scrubbers and other equipment to meet new emissions standards.

Third, the cost of maintaining the electric grid has increased, as more money must be spent on upgrading aging infrastructure.

Finally, demand for electricity has grown in recent years, outpacing supply growth. This has led to higher prices in wholesale markets, which are passed on to consumers.


According to a report from the U.S. Energy Information Administration, the average price of electricity in the United States has risen by about 4 percent over the past year.

The main reason for this increase is the rising cost of natural gas and other fuels used to generate electricity.

In addition to the fuel costs, electricity prices are also affected by the cost of transmission and distribution, as well as government regulations. For example, some state governments have imposed new fees and charges on electric utilities in order to fund energy efficiency and renewable energy programs.

Despite the recent price increase, electricity in the United States is still relatively affordable. The average household in the U.S. spends about $1,340 on electricity each year, which is only about 2.5 percent of their total annual expenses.

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