The new forecast now projects that electricity prices will climb about 5.5% during 2008, which is an increase from the 3.7% increase that was predicted just a few weeks ago.

The EIA agency wrote that just within the last several weeks, several utilities requested permission from state regulators to increase electricity rates in response to the rapidly increasing delivered fuel costs for power generation. Many other utilities are expected to follow suit.

With skyrocketing prices predicted, this will put even more emphasis on ways how to save on electricity bill, and to look for how to save energy.

Natural gas is the primary factor in the projected jump in electricity prices, as the price of natural gas continues to rapidly increase. Natural gas prices make up about 20% of the total price of electricity and 20% of your electric bill.

The EIA has also reported that many utilities have requested permission from their respective state regulators to raise electricity rates to offset the rapid response in the cost of generating power.

Higher energy and electricity bills will impact the elderly and lower income consumers especially hard, according to Anna Aurilio, who is the director of Environment America, which is an environmental advocacy nonprofit.