It is important to realize that our personal electric use plays a large part in determining market prices. Like most products, increased demand places pressure on the wholesale market and leads to higher prices. The same holds true for electricity. The more that is demanded, the higher the price will be.
The first step in combating higher electric prices is to conserve energy. Act 129, the result of House Bill 2200, was recently signed into law to encourage utility companies to reduce energy consumption and peak demand by providing energy efficiency and conservation tools and tips to their customers.
The Act includes measures to institute energy efficiency and demand-side response programs; enhance low-income programs; require competitive purchasing strategies; allow for the installation of smart meters.
Most importantly, the law requires utility companies to reduce overall energy consumption for electricity by 1 percent by 2011 and by 3 percent by 2013. Demand for electricity during peak hours must be reduced by 4.5 percent by 2013.
Read House Bill 2200 here.