Americans are not accustomed to seeing energy prices as high as they have been over the last several months. The average price for a gallon of gas in the U.S. hit $5.004 on Saturday, according to AAA. Already, at least 19 states have average gas prices of $5 or more, with California above $6 a gallon. Some analysts think America could near a nationwide average of $6 a gallon by the end of the summer. Diesel prices, particularly important to the trucking and construction industries, have jumped nationally from $3.21 last year to $5.74 on Friday, a record, according to GasBuddy, which tracks fuel prices.
Tucson Electric Power is asking for an increase that could add $12.68 to the average ratepayer's monthly bill. The request is scheduled to be heard by the Arizona Corporation Commission next week. The utility says it needs $108 million to cover fuel costs and the price of power purchased from outside suppliers over the past two years.
Normally, these costs are adjusted yearly, but the company and commission agreed to hold off on rate adjustments during the coronavirus pandemic.
That meant stable rates for customers, but now several years worth of fuel and purchased power costs have piled up and must be addressed.
TEP is offering to spread the increase over 18 or 24 months instead of one year to ease the burden on customers.
Rise of Electric Vehicles
On top of inflation and rising gas prices, a new trend of manufacturing electric vehicles seems to be here to stay in a new era of transportation. A similar boom happened with muscle cars in the 60s-70s now we are seeing another boom but on electric vehicles.
Car manufactures are racing to develop the ultimate EV but this can cause a ripple effect on the electric grid. Imagine when EVs become more affordable and more accessible than ever before and when people come home from their daily routines, they will all simultaneously plug in their electric vehicle to charge causing our outdated electric grid to go into overdrive.
Electric complies knows this and on top of inflation and raising oil and natural gas prices, they will have to charge even more to update and harden the grid to prepare for this new wave of EVs. The future don't seem to economically friendly and it looks like energy will just keep on rising to a point where it will be unaffordable for some people.
One Solution is already here
The solution to combat this threat is already here! With solar energy, we now have the opportunity to do something to prevent rising energy prices to cripple our bank accounts. Here at SunPower by Nova we offer that solution. If you have the opportunity to own your energy instead of renting it from the electric grid and pay less for solar than you already are paying monthly for your electric bill, then why not capitalize on it before the cost of solar ownership catches up with the rising inflation rates?
Solar is easy to own as of now with our special in-house $0 down installation program. Our program makes it so seamless to go solar that you are virtually switching from grid paid solar to your own solar energy that you own and not lease! In doing so, you will see drastic savings in the first month of solar and your annual savings will be even greater! We service Maricopa, Pinal and Pima counties in Arizona.
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