Many factors influence electricity prices:
Electricity prices generally reflect the cost to build, finance, maintain, and operate power plants and the electricity grid (the complex system of power transmission and distribution lines).
Some for-profit utilities also include a financial return for owners and shareholders in their electricity prices.
Electricity prices vary by type of customer:
Electricity prices are usually highest for residential and commercial consumers because it costs more to distribute electricity to them.
Industrial consumers use more electricity and can receive it at higher voltages, so supplying electricity to these customers is more efficient and less expensive.
The price of electricity to industrial customers is generally close to the wholesale price of electricity. https://www.eia.gov/energyexplained/index.php?page=electricity_factors_affecting_prices
Electricity prices generally reflect the cost to build, finance, maintain, and operate power plants and the electricity grid (the complex system of power transmission and distribution lines).
Some for-profit utilities also include a financial return for owners and shareholders in their electricity prices.
Electricity prices vary by type of customer:
Electricity prices are usually highest for residential and commercial consumers because it costs more to distribute electricity to them.
Industrial consumers use more electricity and can receive it at higher voltages, so supplying electricity to these customers is more efficient and less expensive.
The price of electricity to industrial customers is generally close to the wholesale price of electricity. https://www.eia.gov/energyexplained/index.php?page=electricity_factors_affecting_prices