A rise in wholesale electricity prices
The Energy Information Administration in late July reported that wholesale electricity prices rose nationwide in the U.S. during the first half of 2013 compared to the first half of 2012. “The most important factor was the rise in the price of natural gas (the marginal fuel for generation in much of the nation) in 2013 compared to 10-year lows in April 2012,” EIA reported.
The Christian Science Monitor followed the news with a report that the increase in natural gas prices is being driven by slower natural gas production growth, an increase in natural gas consumption, and a colder winter than usual, resulting in “increased demand for natural gas and lowered storage inventories.”
North Carolina’s electric cooperatives buy some of their power on the wholesale market.