How do some factors affect the energy rates in electricity?
Electricity is a very important aspect of human life. From running minor appliances in the home to bigger power loom in commercial industries, electricity is what we need. Atlanta Energy Plans often reflect the cost of constructing, financing, maintaining, and operating power facilities as well as the energy rate supply (the complex system of power transmission and distribution lines). Electricity rates in certain for-profit utilities include a capital appreciation for stakeholders and investors.
Several aspects affect the energy rate of electricity.
- Fuels: During times of high energy rate demands and when there are fuel supply limitations or instabilities due to extreme weather events and accidental damage to transportation and delivery infrastructure, fuel prices, particularly for natural gas and petroleum fuels may rise. Increased fuel prices may result in higher energy generation rates.
- Costs of power plants: Each power plant incurs finance, construction, administration, and operational expenses.
- Transmission and distribution system: