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U.S. consumers face higher electricity prices-EIA

Wed Jul 9, 2008 12:46am IST
 
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WASHINGTON, July 8 (Reuters) - Americans, already hit by surging gasoline prices, will also face rising electricity costs this year and next, the U.S. top energy forecasting agency said on Tuesday.

Higher costs for natural gas to fuel power plants will be passed on to consumers, causing residential electricity prices to climb by 5.2 percent this year and 9.8 percent in 2009, the Energy Information Administration said in its new monthly energy forecast.

Electricity prices increased just 2.2 percent in 2007.

Several utilities have petitioned state regulators for permission to raise electricity rates in recent weeks in response to higher delivered fuel costs for power generation.

"It is likely that most other utilities will soon need to pass through these increased costs to retail customers as well," the EIA said.

Less air conditioning use and the weak U.S. economy are expected to keep electricity consumption mostly unchanged in 2008 from last year, the agency said.

Although the summer began about 20 percent warmer than the 30-year average, temperatures for the rest of the season should be slightly lower than normal, the EIA said.

But in 2009, electricity demand is expected to increase by 1.4 percent. (Reporting by Ayesha Rascoe; Editing by Marguerita Choy)

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