Factors that influence electricity Prices?

Reliant Energy Plans

Electricity prices

Generally, electric prices reflect the finance, cost to build, maintain, finance, and operate power plants and electricity grids. We can say that electricity prices are usually highest in the summer. Most consumers pay a rate according to the season. Changes in prices based on the availability of

  • Generation source
  • Power plant
  • Fuel costs.

The cost to supply electricity will vary from minute to minute. It can be varied by the type of customers. Here we can also more electricity is used by most of the industries. Supplying electricity to these customers is more efficient and less expensive. The price of electricity to industrial customers is nearly close to the wholesale price of electricity.


  • Fuels. Transmission and distribution system.
  • Weather conditions.
  • Power plant costs.
  • Regulations.


Reliant Energy Plans for fuel such as coal, natural gas, and petroleum. During the time of electricity demand, fuel prices will increase especially for petroleum and natural gases. whenever a fuel supply will distract by weather events and accidental damage caused for transportation and delivery infrastructure. For a higher cost of electricity, fuel prices will be used as higher.

Transmission and distribution system:

The electricity transmission and distribution system will connect to power plants with consumers they may have some maintenance charge, operations, and construction which include repairing for damage to the system from a weather event or an accident.

Weather condition:

We may use an extreme temperature for demand for cooling and heating. It will result in the case of increasing an electricity demand it may push up into a fuel and electricity prices.

  • Rain and snow can provide water for a low cost.
  • Wind and hydropower generation provides a low cost during the time of wind speed which is favorable.
  • Whatever, when there are competing or drought demands for water resources or when wind speeds drop from that source put forward the pressure on other energy because of the loss of electricity generation.

Power plant costs:

The cost analysis of plant of the plant was carried out based on total investment, revenue, and operating cost.

This total capital investment includes total direct plant cost and total indirect plant cost.

Total direct plant cost includes

  • Boiler
  • Turbine
  • Steam
  • Extraction pump
  • Feedwater pump.

Total indirect plant cost includes

  • Set up
  • Cost of engineering
  • Net present value method.

For this purpose for 35 years plant life was evaluated because of a parametric study with and without an escalation rate. Compared to other factors in a study, this plant life, escalation rate, and interest rate will be observed very sensitively on plant economics.


Reliant Energy Plans

        In some states, a utility commission and a public service commission will have to regulate prices at the same time other states have a combination of unregulated prices.

Electricity prices vary by place:

Prices may differ from place to place or locality according to availability of fuel, power plants, local fuel cost, and pricing regulations. Prices in Hawaii may be high compared to other states because the majority of electricity is generated there. These are the factors that influence the energy rates and as well prices according to places.