Gas Prices, Electric Cars and Electricity Rates

With rising gas prices, the economy is struggling to stay above water. People are turning to the electric car for the answer to the problem.

A miss consupsion about electric cars is how much it cost compared to gas power cars. Consumers electric bill is based on usage. If a consumer uses more electricity the electricity rate goes done because TDSP (Transmission and Distribution Service Provider) charges are averaged into the rate. Electricity rates all across the country are going up.

Problems with electric cars

A problem with using electric cars is grid. Can the power grid handle all the extra electricity usage? If not it means more power planet will have to be bulit.

The electric cars price is another problem. Compared to the prices of a gas power car an electric powered car is twice as high. There are tax incintives for buying an electric car. Some over $5,000. The selling point is consumers will save money because it is cheaper to use electricity than gas to power their car. It’s true electricity is cheaper than gas but is it whearth $40,000 just to save 40 bucks a weak on gas. Most consumers will say “no thanks you” and go with the cheaper gas powered car.

Gas prices still will have an affect on electric cars because they are direclty related to electricity rates. When gas prices goes up so do electricity rates. The difference is consumers that live in a deregulated state and have a fixed rate plan will not see prices change until they have to resign with an electric provider. This is one of the bueities of signing up with a fixed rate plan. If gas prices increase your electric rate will remain the same until your term is up.

The US economy needs to find a way to flurish despite high gas prices. Electric cars are just one way people are sugusting we try.

The World’s economy

Many people believe the US needs to depend less on over seas oil. The affects of using less oil may cause a strain on public relations with foreign countries. It could put a strain on the world’s economy if America did not use any foreign oil.