Other factors that affect pricing range from power outages and maintenance to weather conditions and simple supply and demand -- the only factor that consumers can control.
Certain states have also seen prices rise recently as so-called "rate freezes" expired and utilities attempted to make up for lost time. Those freezes were put in place by the government to control power costs, but didn't factor in surging commodity costs down the road.
Some Maryland electric bills rose as much as 72% in 2006 due to that trend, hurting consumers and businesses alike. More residential customers have been asking for assistance to pay utility bills, and some businesses relocated, held off on expansion or simply closed up shop, hurting local economies.
States like Pennsylvania and Ohio, which are facing similar rate-freeze expirations, have worked out plans to phase in higher rates over time or include regulated power and renewables in the mix to ease the pain of rate hikes.
The point of deregulating the power market was to provide more choices for consumers, with the belief that strong competition would lower prices. But even Texas, whose deregulation was once hyped as the perfect example of the free market at work, with more than 100 power companies operating in the state, is now facing surging electricity prices as well.
Before deregulation in 2002, Texas was among the least-costly states for power purchases. Now, as many small power producers have gone bankrupt, the cost for some consumers has become the most expensive in the nation. Regulators have also accused the state's largest utility, TXU Energy, of manipulating the power markets to bilk consumers out of $70 million dollars.
