Rising Utility Costs Lingering After Winter’s Chill Fades
By Naureen S. Malik Mar 26, 2014 10:48 AM ET
U.S. consumers got a glimpse of rising future utility bills during the winter as coal- and nuclear-plant shutdowns boosted reliance on natural gas.
Demand for gas, used to heat half of U.S. households and generate 27 percent of the nation’s power, reached records from New York to Los Angeles in January, sending regional prices to all-time highs.
Costs surged as a polar vortex and waves of arctic air caused the coldest weather in 32 years. Prices may rise further next winter as 79 coal-fired power plants close because of stricter environmental rules, while Entergy Corp.’s Vermont Yankee nuclear plant was the fifth to announce a permanent shutdown over the past two years.
“For those willing to write off nuclear and coal, this winter should raise a red flag,” said Stephen Schork, president of Schork Group Inc., a consulting group in Villanova, Pennsylvania. “We are setting ourselves up for a massive rally in natural gas.’”
Households in the lower 48 states spent 5 percent more on electricity and 10 percent more for gas on average this past winter, the U.S. Energy Information Administration estimated in a March 12 report. Consolidated Edison Inc., which owns New York City’s utility, said the typical residential electric bill rose 22 percent to $118 in February from a year earlier.
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http://www.bloomberg.com/news/2014-03-26/high-utility-costs-to-linger-after-winter-s-chill-fades-energy.html