After peaking in 2008, the collapse of natural gas prices theoretically saved Americans nearly $250 billion over 3 years. Had the net savings been a stimulus package, the first year alone would have been the 2nd biggest in history. Seven years of low natural gas prices have resulted in plummeting wholesale power prices (what the utility pays), but few Americans feel like they’ve seen any benefit, especially on their electric bills.
Although natural gas prices, which are the biggest input into the electric system, have declined by 39% over the last decade, electricity prices have risen by 40%. As the industry saved around $30 billion a year, consumer rates still rose faster than inflation.
