As the demand for electricity drops, so does the cost of consumers' energy bills. Energy consumption fell 1.6 percent in 2008, and 2.7 percent this year. The last time energy consumption fell two years in a row? 1949.How has this happened? Americans are having a tough time finding jobs, so they keep their pockets full and spend less. Because of the ripple effect, retailers report declining sales ... 12 straight months to be exact. Manufacturers are making less products to sell. An Associated Press article reports, " Power consumption by the industrial and manufacturing companies that make everything from cars to cotton swabs has fallen faster than anywhere else- 10 percent this year by government estimates."
Who gets the shrunken electricity bill? It depends on where you live. Anywhere utilities are based on long term contracts and regulated markets will not benefit. Spot prices found in the Northeast, West, or Texas will see relief this season.
This break in electricity bills may not last forever. As the recession slowly recovers, the demand and cost of electricity will begin to rise once again. The cost of new plants and transmission lines to fix the aging U.S. power infrastructure will be a cost consumers and businesses will have to pay for.
Luckily, regardless of where you live, meteorologists predict a warm winter.
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