What factors affect future variable electric supply prices?
A. Over half of the state’s electricity is generated by burning fossil fuels: oil, coal, and natural gas. When the prices of these generation fuels increase, so do electricity prices. Supply and demand also affect electricity prices. Electricity demand is high in the summer because of increased use of air conditioning and cooling appliances. Increased demand tightens supply and causes electricity prices to rise. Energy conservation is an important component of lowering energy costs. The less electricity you use, the lower your bill.
