Why Peak Power Demand Is Softening

When it comes to wholesale power, the summertime is the peak period of the year. But this summer, it appears that peak power prices are being shaved. Shaving prices lowers the market's average price, and that can mean lower margins for the nation's independent power producers (IPPs).

Price shaving can be caused by several factors. One is the normal market reaction to power supply and consumer demand. It appears there's plenty of supply, even in the face of new Environmental Protection Agency rules. It turns out that the EPA's rules do not require utilities to shutter non-compliant generators until 2014, at the earliest. So while there's adequate supply, it appears that demand is softening....568 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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