The electricity rates have been surging since the past decade. However, have you ever wondered what’s the reason behind these skyrocketing energy bills every month? Not one but multiple causes are responsible for influencing the electricity rates. Moreover, these determinants are highly erratic and their effect keeps transitioning across states. Here are the four key factors that decide the electricity rates for your home.

• Power plants –  Each power plant is based in a different location and might have a unique infrastructure which automatically customizes its operating and maintenance costs. Moreover, the transmission and distribution systems that supply electricity also have separate maintenance expenses such as damage repairs caused by extreme weather or accidents.

As compared to an industrial setting, expensive electricity rates are charged for residential or commercial consumption. This is because it requires more finances for distributing electricity across different locations. Conversely, industrial settings use more electricity at higher voltages which makes it easier to transport and comparatively cheaper.

In most scenarios, consumers have to pay high electricity rates during the months of summer as there’s an increased demand for energy. Therefore, expensive energy sources might have to be used during this season to gratify the added demand. Currently, states such as Oregon, Idaho, Washington, Missouri, Kentucky, Arkansas, Utah, and Nebraska offer some of the cheapest electricity rates in the country.