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Wholesale electricity prices trended higher in 2021 due to increasing natural gas prices

Average wholesale prices for electricity at major trading hubs in the United States were higher in 2021 than in 2020 as increasing costs for power generation fuels, especially natural gas, pushed electricity prices higher in the second half of 2021. Constraints on electricity supply as a result of cold weather in the central United States also created price spikes in February 2021.

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