Wholesale power cost tracker decreases in June

Posted on Jul 05 2021 in Southern Indiana Power

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 has taken steps to improve efficiencies and control costs associated with delivering electricity to your homes and businesses. This is evident by Southern Indiana Power’s rate stability over the past 10 years.

While many of our neighboring utilities have had or are seeking rate increases, Southern Indiana Power is prepared to pass on a modest rate DECREASE. Beginning June 1, the monthly bill for a customer using 1,000 kilowatt-hours was about $1 lower than our current charges. We recognize that this slight decrease might go unnoticed by most members, Southern Indiana Power is very pleased to be in a position to lower our electric rates in a time where most consumer products are seeing significant increases.

Energy costs overall have remained steady over the past 10 years. Most recent rate forecasts continue to show steady electricity prices for our members for the next several years 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 which basically stabilizes the demand for energy.
  • Lower fuel cost: Costs for fuels used to generate electricity, including natural gas and coal, have decreased, and forecasts suggest fuel costs will remain stable for the next few years.
  • Decreasing regulations: The EPA’s “all of the above” energy approach has given power producers a breather from burdensome regulations. However, this could quickly change with a new administration.
  • Stable wholesale market: Prices in the wholesale power market have stabilized in recent years, and commodity futures continue to look flat.

If you have any questions, please contact us at 800-323-2316. As always, the mission of Southern Indiana Power is to provide safe, reliable and affordable power while improving the quality of life for our members.