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Prices. Within the last few weeks, a number of utilities have requested permission from their particular State regulators to raise electricity rates, and there increase customers utility bills, in response to rapidly increasing delivered fuel costs for power generation. These higher rates will help encourage Americans to save electricity. It is likely that most utilities nationwide will soon need to pass through these increased costs to retail customers as well in the form of higher electricity bills. As a result, the forecast for growth in electricity prices is significantly higher than it was in last month’s Outlook. Average U.S. residential electricity prices are expected to increase by 5.2 percent in 2008 and by an astonishing 9.8 percent in 2009 (U.S. Residential Electricity Prices).
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