Journal Opinion Article - Essay Example

September 9, Journal Opinion Article The article en d “Expect Cheaper Electric Bills This Summer” written byEric Morath and published online on June 25, 2013 at The Wall Street Journal presented the main point which alleged that the onset of summer months in the U.S. this year forecasted potential decline in the rates of electric bills for the average American household. It was clearly noted that “the relief this summer, however, is due to expected cooler temperatures, rather than cheaper rates…That will allow households to dial back on cooling, causing a 4.

6% decline in average usage” (Morath pars. 3 & 4). A closer examination of the decline in rate from the U.S. Energy Information Administration (EIA) revealed the following: “EIA forecasts the summer 2013 average U.S. residential electric bill will total $395 over the three-month period of June, July, and August, which is $10 (2.5 percent) lower than the average customer’s bill during summer 2012. Forecast milder temperatures than last summer contribute to a projected decline in average electricity usage per customer, which is partially offset by a projected 2-percent increase in average electricity prices” (U.S. Energy Information Agency 1).

It was evident therefore that the forecasted decline was pinpointed to lesser consumption. The advisory even noted that there was an increase in the electric prices of as much as 2%; which, if the expected milder temperatures would turn out to be unrealized; then, consumers would actually expect a higher average electric rate. It is just interesting to note that only in a country like the U.S. could it be possible to expect a decline in electric bills during summer months. In other Asian countries, for instance, it has been evident that during summer months, consumers are already expecting greater financial stress due to increases in rates of electricity.

It is traditionally asserted that “electric delivery rates do not change in the summer; however, your bill may rise in summer due to higher consumption” (Oncor par. 1). And the sources of potential increases in consumption include: (1) vacation from school puts children at home most of the time during summer and therefore, expect to use more television, personal computers, and other electric gadgets; (2) due to obviously higher temperature than cool months, air-conditioning or other ventilation units are turned on longer; (3) since more people are consuming more on electricity through the noted consumption patterns, the cost of fuel (depending on demand and supply) could likewise be affected.

As such, although there could be some valid points in the report written by Morath, when the basis of comparison for electric bill rates were the three consecutive summers that were deemed hotter; one is convinced that overall, consumers could still expect some increases in their electric bill due to the reasons enumerated above that could affect consumption usage; in conjunction with the announced 2% increase in the average prices of electricity, as announced. Early announcement of an impending decline might even spur consumption levels to greater heights and consumers might just get the unexpectedly high rates of electric bills this summer.

Works CitedMorath, Eric. "Expect Cheaper Electric Bills This Summer." 2013. The Wall Street Journal. http://blogs.wsj.com/economics/2013/06/25/expect-cheaper-electric-bills-this-summer/. 26 June 2013.Oncor, Steve. "Why do electricity rates seem to go up in the summer?" n.d. askoncor.com. http://www.askoncor.com/EN/Pages/FAQs/Billing-and-Rates-5.aspx. 25 June 2013.U.S. Energy Information Agency. "Short-Term Energy Outlook (STEO)." June 2013. eia.gov. http://www.eia.gov/forecasts/steo/pdf/steo_full.pdf. 25 June 2013.