EIA’s recently released analysis of the Environmental Protection Agency’s proposed Clean Power Plan (CPP) rule finds that electricity prices are expected to rise. However, efficiency and price-induced conservation moderate the projected increase in consumer electricity bills. Implementation of the proposed rule causes electricity prices to increase compared with prices projected in Reference case (baseline) as new generating capacity is built and operated and as investments are made to improve the operating efficiency of existing electric generators. As coal-fired generators are retired, the increased use of natural gas for generation leads to higher natural gas fuel prices. Demand-side energy efficiency (EE) is another compliance option for emissions reductions under the proposed plan. Electric utilities and government programs can create incentives for consumers […]