What Are Electricity Price Charts?


Quick Answer

Electricity price charts track the cost of creating energy, sometimes through a specific method or within a specific region, serving as an aid for investors in commodity futures, as well as in other related industries. The charts also help to understand the energy costs of different areas and trace causes to different environmental or other issues.

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Full Answer

One type of electricity price chart looks at the cost of creating electricity through the use of different resources, such as coal, natural gas, renewable means or nuclear energy. Businesses may use such a chart to determine which resource fields offer the best return on investments, as well as identify which resources carry the highest conversion costs. These charts may also be part of other graphs and projects to help government and other organizations determine the environmental and economic impact of each resource type for the energy market, such as identifying the effect of cheap resources that produce harmful emissions.

Another type of electricity price chart simply tracks the cost of energy per kilowatt over time, which allows analysts to identify periods of significant changes and determine their causes. Some charts look at national averages, while others focus on different regions of the country or specific states. Charts with a smaller sample size often allow for more accurate results, as they relate to more detailed energy sources.

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