WTE and electricity pricing

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Author: Ellis Burruss
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Date Published: 06/17/2012

One of the most basic rules of business is to buy products at wholesale for less than they are to be sold at retail. That’s how profits are made. However, the people who are proposing to build a so-called “waste-to-energy” (WTE) incinerator in Frederick are basing their financial projections on selling electricity in 2015 at 8.3 cents per kilowatt-hour (kwh). They are planning on a wholesale price that is much higher than the current retail price. Look at your most recent electric bill from Potomac Edison and you’ll see that the retail price of electricity as of June 1 is 6.02 cents per kwh. The price will drop to 5.9 cents per kwh in October. Yes, electricity prices are going down.