the cost of using a particular energy source.
Electricity, oil, gas, water, etc.
The cost of using a particular energy source is fixed and known before any purchase or consumption. For example, a house takes a certain amount of energy to heat, light, and cool.
The fixed cost is not something you can go out and modify if you want to, but it’s something that you can plan for. Just like you can’t go out and try to make a more efficient car or an SUV than you are now. Like I said, the fixed cost of electricity is known, and it will cost you something to start using that energy source.
It’s easy to know the fixed cost of a particular energy source. But what about the fixed costs of other things that you could purchase when you’re making a purchase? It’s easy to estimate the cost of buying airfare, lodging, and other travel expenses.
The biggest difference between gas and electricity is that gas is more expensive than electricity. But what if we went to that gas-cost of energy, and asked for a car or a rental car or something? We’d have to make our buying decisions from gas vs electricity.
It’s easy to see from this chart that the cost of energy is going to change a lot over the next few years.
Electric power can be very expensive. For example, in California, the average price of a kilowatt hour of electricity is $0.14. In the U.S., the average price of gas is the same, but electric prices are much higher, and electricity prices are just half the price of gas.
The problem is that electricity prices, especially in cities like Los Angeles and San Francisco, are so high that many people choose to just avoid them altogether. This can be done by buying a hybrid car, which has a much lower electricity price, or by having a car that is only charged with electricity.