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Why do energy prices fluctuate?

There are a number of factors impacting the price you pay for energy. Depending on the state, the portion of the grid you are connected to, and your local utility, certain price variables may have a stronger or weaker impact on your total price of energy. The variable "energy" is often the largest and most volatile price component in your total price of energy and reflects the market's expectations of energy supply (of either a fuel source or the power plants themselves) and energy demand. As investor perception of supply and demand fluctuates, along with fluctuations in the values of the underlying assets, the price for energy also fluctuates.

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