FPN04-23
Energy Costs Rising Rapidly
April 7, 2004
The Potomac Electric Power Company (PEPCO), in an April 2, 2004 letter to
its Washington, DC area customers, notes that over the past four years fuel
prices have risen sharply, including a 46% rise in the price of natural
gas, a nearly 70% rise in the price of oil, an almost 60% rise in the price
of gasoline, and a nearly 82% rise in the price of coal. Most electricity
in the U.S. comes from coal, with a growing percentage coming from natural
gas.
Noting that fuel is only one element in the cost of electricity, the other
substantial cost being transmission, PEPCO states they expect the average
total price their residential customers pay for electricity (including
supply and delivery) will increase approximately 16% this year.