Commercial Electricity Market Information
The nature of the electricity market is similar to other competitive commodity markets: prices reflect the ability of supply to meet demand at any one time. The economics of producing electricity are relatively straightforward.
When demand for electricity rises, prices rise accordingly. Generators respond by increasing their production capabilities. As a consequence, production over time tends to increase to match demand.
Electricity prices are determined by the competitive forces of supply and demand. The short-term or spot price can fluctuate significantly from day to night, season to season, weekday to weekend. For instance, if one generation facility is out of service in the middle of a heat wave, our demand for electricity can exceed the supply capacity. We then have to import electricity from neighboring regions, which affects the short-term price of electricity.
Longer-term electricity prices are determined by factors like population and economic growth, and environmental policies.
Although you are purchasing your energy from Universal Energy®, you will still receive your bill from your Local Distribution Company (LDC), and they will continue to provide you with 24-hour emergency services.