U.S. sees 9.8% spike in '09 electric bills

Electricity forecast for 2009 is up sharply from last month; increase in price of natural gas a factor.

EMAIL  |   PRINT  |   SHARE  |   RSS
 
google my aol my msn my yahoo! netvibes
Paste this link into your favorite RSS desktop reader
See all CNNMoney.com RSS FEEDS (close)
By Lara Moscrip, CNNMoney.com contributing writer

NEW YORK (CNNMoney.com) -- Americans may face dramatically higher electric bills next year, according to a government report released Tuesday.

The U.S. Energy Information Administration forecast that electricity prices will climb an average of 9.8% in 2009. Only a month ago, the agency was forecasting a 3.6% increase for next year.

The new forecast projects that electricity prices will climb 5.2% in 2008, an increase of nearly 1.5 times the projected 3.7% increase that was forecast in June.

"Within the past few weeks, a number of utilities have requested permission from state regulators to raise electricity rates in response to rapidly increasing delivered fuel costs for power generation," EIA wrote. "It is likely that most other utilities will soon need to pass through these increased costs to retail customers as well."

The increase in price of natural gas is a main factor in the projected jump in electricity prices, according to Tancred Lidderdale, an EIA economist. He said natural gas makes up about 20% of the price of electricity.

The EIA reports that many utilities have requested permission from state regulators to raise electricity rates in response to the increased cost of generating power. To top of page

Features
They're hiring!These Fortune 100 employers have at least 350 openings each. What are they looking for in a new hire? More
If the Fortune 500 were a country...It would be the world's second-biggest economy. See how big companies' sales stack up against GDP over the past decade. More
Sponsored By:
2015 Mustang's asphalt-peeling power goes modern The new Ford Mustang has been upgraded and updated to compete globally - but never fear, it's still a monster. More
15 top executives with $1 salaries Some CEOs and founders agree to salaries of just $1 a year. But once goodies like bonuses and stock options are added in, some of those executives end up taking home many millions of dollars a year. More
Mercedes SL65 AMG: 621 horses of topless power Turn heads as you blow by traffic in this roadster convertible from Mercedes. More


Market indexes are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer Morningstar: © 2014 Morningstar, Inc. All Rights Reserved. Disclaimer The Dow Jones IndexesSM are proprietary to and distributed by Dow Jones & Company, Inc. and have been licensed for use. All content of the Dow Jones IndexesSM © 2014 is proprietary to Dow Jones & Company, Inc. Chicago Mercantile Association. The market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. FactSet Research Systems Inc. 2014. All rights reserved. Most stock quote data provided by BATS.