Electricity Price Volatility in District of Columbia
5-Year Volatility
The 5-year volatility for District of Columbia is 19.56% (rank #1 among states). This measures the coefficient of variation of monthly electricity rates over the last 5 years—higher values mean more fluctuation.
The national average volatility is about 10.26%. District of Columbia's volatility is higher than the national average, meaning electricity prices in District of Columbia have historically been more volatile than typical across the U.S.
What Can Cause Electricity Price Volatility
Possible drivers of electricity price volatility include:
- Fuel price changes — Natural gas, coal, and other fuel costs can swing with commodity markets.
- Extreme weather — Heat waves and cold snaps affect demand and can strain supply.
- Grid constraints — Transmission limits and congestion can cause regional price spikes.
- Market structure — Deregulated markets may see more price variation than regulated utilities.
Related Pages
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