Thursday, April 2, 2015

Electricity Production

Electricity producers are changing from nuclear power to natural gas powered due to the decline in the price of natural gas.  Notice that as natural gas prices decrease so does the marginal cost of producing electricity.  When marginal cost's decline this can shift the supply of electricity to the right which results in a decrease in the electricity prices.  As electricity prices fall some electric producers are choosing to shut-down higher operating costs plants.

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