There is a drop in electricity prices, not just natural gas. What that means for alternative energy and conservation is unclear. It buys more time to reduce demand and find other sources of energy but also reduces incentive to use less.
Here's the link to today's Wall Street Journal story:
http://online.wsj.com/article/SB125003563550224269.html
And here are some excerpts:
'Slack demand for electricity across the U.S. is leading to some of the sharpest reductions in power prices in recent years, offering a break for consumers and businesses who just a year ago were getting crunched by massive electricity bills.
On Friday, the nation's largest wholesale power market serving parts of 13 states east of the Rockies is expected to report that electricity demand fell 4.4% in the first half of the year. That helped to push down spot market prices by 40% during the first half of this year.
Dramatic price reductions don't immediately mean lower power bills for all consumers. That's because many customers pay prices based on long-term contracts. But lower prices will have a softening effect over time.
Some wonder whether the deregulated markets of the Eastern U.S., Midwest, Texas and California will be especially hard hit if demand comes roaring back. That's because utilities in these markets no longer are required to build new resources. It's left up to the power generators to determine when the market conditions are ripe.
"There's more supply than demand and prices are really low so it doesn't make sense to build anything," says John Shelk, president of the Electric Power Supply Association in Washington, D.C., a group that represents power generators.
Many electricity markets throughout the country have implemented demand reduction programs that give consumers a further incentive to reduce power use. The 13-state PJM Interconnection market has been one of the most aggressive -- and has seen one of the steepest price drops.'
Here's the link to today's Wall Street Journal story:
http://online.wsj.com/article/SB125003563550224269.html
And here are some excerpts:
'Slack demand for electricity across the U.S. is leading to some of the sharpest reductions in power prices in recent years, offering a break for consumers and businesses who just a year ago were getting crunched by massive electricity bills.
On Friday, the nation's largest wholesale power market serving parts of 13 states east of the Rockies is expected to report that electricity demand fell 4.4% in the first half of the year. That helped to push down spot market prices by 40% during the first half of this year.
Dramatic price reductions don't immediately mean lower power bills for all consumers. That's because many customers pay prices based on long-term contracts. But lower prices will have a softening effect over time.
Some wonder whether the deregulated markets of the Eastern U.S., Midwest, Texas and California will be especially hard hit if demand comes roaring back. That's because utilities in these markets no longer are required to build new resources. It's left up to the power generators to determine when the market conditions are ripe.
"There's more supply than demand and prices are really low so it doesn't make sense to build anything," says John Shelk, president of the Electric Power Supply Association in Washington, D.C., a group that represents power generators.
Many electricity markets throughout the country have implemented demand reduction programs that give consumers a further incentive to reduce power use. The 13-state PJM Interconnection market has been one of the most aggressive -- and has seen one of the steepest price drops.'
