in News Departments > New & Noteworthy
print the content item

Higher fuel prices, increased capital costs and continued uncertainty about climate policy are helping fuel the rising costs of electricity faced by consumers across the country, according to a report by the Federal Energy Regulatory Commission (FERC).

The rising cost trends are likely to continue for years, according to the report presented to FERC by analysts from its office of enforcement. The report pegs current futures prices for natural gas at $2.50 to $5 above the average 2007 spot price. In addition, costs for everything from iron and steel to cement and copper wire have risen significantly over the past several years. These increases have contributed to the rise in the cost of new generation for every type of power plant - from nuclear power to combustion turbine and wind generators, according to the report.

"We must confront three realities: FERC is regulating in a high-cost environment; the United States needs massive investments in new electricity generation, transmission and distribution facilities; and we are beginning to confront the climate change challenge, which puts us in a period of uncertainty regarding policy," says FERC Chairman Joseph T. Kelliher. "There is tension among these three realities, and they work at cross-purposes. The United States cannot simultaneously make the massive investments necessary to assure security of our electricity supply, make additional large investments to confront climate change and lower electricity prices."

The report also says that consumers and the market will likely respond with demand response measures that help reduce energy consumption during times of peak prices, energy efficiency and conservation measures, and technological innovations that could usher in changes that help reduce costs and improve value.

To read the report, go to ferc.gov

SOURCE: Federal Energy Regulatory Commission


Trachte Inc._id1770
Latest Top Stories

The Song Remains The Same: Ontario Seeks More Science Before Lifting Offshore Ban

The Ontario government says the nearly four-year-old offshore wind moratorium will remain in place until the province fully understands the technology’s impact on the environment.


Why States Should Adopt A Renewable Portfolio Standard

A new study analyzes the potential benefits of state renewable energy mandates, as well as recommends what such policies should include.


Sen. Reid Vows To Bring Wind PTC To A Vote By Year's End

Nevada's senior senator provides some encouragement to wind industry advocates during his annual Clean Energy Summit.


Steadily, Wind Turbine OEMs Resume R&D Investment

An increased commitment to research and development will likely lead to wind energy innovation - not to mention a likely increase in patent-protected technology.


Quebec Government Postpones Wind Power RFP; No New Date Scheduled

The request for proposals (RFP) is part of an overall 800 MW wind power tranche that will serve as a bridge to the next phase in the province's energy future.

Renewable NRG_id1934
Canwea_id1984
Future Energy_id2008
UnitedEquip_id1995