Title: Prices and factors affecting prices - U.S. Energy Information Administration (EIA)
Headings: Electricity explained
Factors affecting electricity prices

Electricity explained Factors affecting electricity prices
Many factors influence electricity prices
did you know
Electricity prices are usually highest in the summer
did you know
Electricity prices vary by type of customer
Electricity prices vary by locality

Content: Prices and factors affecting prices - U.S. Energy Information Administration (EIA)
Electricity explained Factors affecting electricity prices
Many factors influence electricity prices
Electricity prices generally reflect the cost to build, finance, maintain, and operate power plants and the electricity grid (the complex system of power transmission and distribution lines ). Some for-profit utilities also include a financial return for owners and shareholders in their electricity prices. Several key factors influence the price of electricity: Fuels: Fuel prices, especially for natural gas and petroleum fuels (mainly in Hawaii and villages in Alaska), may increase during periods of high electricity demand and when there are fuel supply constraints or disruptions because of extreme weather events and accidental damage to transportation and delivery infrastructure. Higher fuel prices, in turn, may result in higher costs to generate electricity. Power plant costs: Each power plant has financing, construction, maintenance, and operating costs. Transmission and distribution system: The electricity transmission and distribution systems that connect power plants with consumers have construction, operation, and maintenance costs, which include repairing damage to the systems from accidents or extreme weather events and improving cybersecurity.