Southern Indiana Power and our power supplier, Hoosier Energy, have worked hard over the past several years to minimize volatility in your power costs. In addition, Southern Indiana Power continues to take steps to improve efficiency and control costs associated with delivering electricity to your homes and businesses.
Energy costs have finally stabilized this year after a few years of extreme volatility due to the forces of low supply and demand and federal regulations. Looking into the future, the energy markets anticipate more supply to meet the rising energy demand, along with some relief from burdensome federal regulations. All this combined is leading to a more favorable rate forecast beginning this January. With the January tracker decrease, the monthly bill for a customer using 1,000 kilowatt-hours will be about $2.60 lower than the current charges. Electricity remains a great value when compared to other forms of energy.
FACTORS STABILIZING ENERGY COSTS
Let’s review a few factors affecting energy costs in Indiana and across the country.
- Slow growth: Economic growth in the U.S. and overseas has been slow, helping stabilize the energy demand.
- Lower fuel cost: Fuels used to generate electricity, including natural gas and coal, have decreased in cost, and forecasts suggest fuel costs will remain stable for the next few years.
- Decreasing regulations: It’s anticipated that under the new administration, the EPA will have an “all the above” energy approach that will essentially give power producers a breather from burdensome regulations.
- Stable wholesale market: Prices in the wholesale power market have stabilized this year, and commodity futures remain flat.
As always, we are continually focused on Southern Indiana Power’s mission: to provide safe, reliable, and affordable power while improving the quality of life of our members.
If you have any questions, please contact us at 800-323-2316 or online at southernindianapower.com.
