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Electricity Prices

Rise in Energy Production Causes Decrease in Wholesale Electricity Prices

Why is it important?

The price of electricity is an indicator of financial capital gained from energy production in the Sierra Nevada. Also, the production cost for agricultural products—an important financial sector in the Sierra Nevada—is directly affected by the price of electricity and the amount of energy available. The value of electricity in the Sierra Nevada is not necessarily transferred to the communities where the energy is produced. Energy companies charge customers for the cost of energy transfer, and that cost is not fully redistributed to the community. Therefore, urban areas receive more value than rural areas, as the cost of transfer tends to be less. This may account for higher electricity prices in Northern California than in Southern California during the 2000-2001 energy crisis.

How are we doing?

In the majority of the Sierra Nevada, annual wholesale electricity prices decreased with a rise in energy production between 2001 and 2003, as shown in the energy produced natural capital indicator.

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