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Gas Shortage Drives Up Electricity Prices

We’ve been telling business owners for a while that the price of electricity is no longer stable. The recent and continuing closures of coal-fired electricity plants has caused the energy industry to turn more and more to natural gas to cover the production that would have been generated by those now-retired coal plants.

billsThe increased demand for natural gas has in turn put a strain on the country’s natural gas reserves, which is now resulting in higher prices for both natural gas and electricity.

In Massachusetts for example, National Grid is predicting customer rates to rise by a “whopping” 37 percent, according to a recent article in the Boston Globe. That predicted rise would drive the price to about 24.2 cents per KWH, which is more than twice the current national average of 11.9 cents per KWH, according to the Energy Information Administration. Other utilities are warning customers to brace for higher electricity bills this winter as well. A senior energy analyst at the National Consumer Law Center in Boston was quoted as saying, “This is pretty bad, and it’s going to really have a bearing on a lot of Massachusetts households’ abilities to just make ends meet this winter.”

Here at US Power and Gas we can help business owners fight these rising costs by securing solid fixed pricing that protects them as electricity prices continue to rise.

US Power and Gas
9701 International Court North, Suite A
St. Petersburg, FL 33716