Fusion Power Associates
2 Professional Drive, Suite 248
Gaithersburg, MD 20879
phone: (301) 258-0545
fax: (301) 975-9869
e-mail: FusionPwrAssoc@aol.com
web: http://fusionpower.org


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FPN04-23

Energy Costs Rising Rapidly

April 7, 2004

The Potomac Electric Power Company (PEPCO), in an April 2, 2004 letter to its Washington, DC area customers, notes that over the past four years fuel prices have risen sharply, including a 46% rise in the price of natural gas, a nearly 70% rise in the price of oil, an almost 60% rise in the price of gasoline, and a nearly 82% rise in the price of coal. Most electricity in the U.S. comes from coal, with a growing percentage coming from natural gas.

Noting that fuel is only one element in the cost of electricity, the other substantial cost being transmission, PEPCO states they expect the average total price their residential customers pay for electricity (including supply and delivery) will increase approximately 16% this year.