Electricity price increases have slowed since 2022 when consumers paid 14.3% more than in 2021, reflecting a decline in overall inflation that peaked last June at 9.1%.
Electric demand in the second quarter is down about 1% from the same period last year, according to EIA. Lower demand largely reflects the agency’s expectation for temperatures that are milder than last year.
“Less demand, along with growing generation from renewable energy sources and lower natural gas prices, significantly lower electric power prices in our forecast for 2Q23 and 3Q23 compared with the same periods in 2022,” EIA said.
