4 Key Factors That Affect Energy Bills
You pay for the electricity you consume each month, but there are additional factors that impact your energy bills.
Fuel costs
Before electricity can be delivered to your home, it must first be generated at a power plant or from a renewable source. The cost of fuels used to generate electricity fluctuates, which is why you see a power or fuel charge on your monthly bill. This monthly charge covers cost fluctuations without having to continually restructure electricity rates.
Service costs
Your bill includes a monthly service charge, which recovers part of the co-op’s ongoing investments in poles, wire, meters, system maintenance, and additional costs necessary to provide electric service.
Weather
When temperatures soar or dip, your cooling or heating equipment must run longer and at maximum capacity, which can greatly increase your energy use. Extreme temperatures can also aect electricity market prices. When the need for electricity increases due to extreme heat or cold, the price of power typically rises.
Energy consumption
This is the amount of electricity you use each month to power your home’s cooling/heating system, appliances, lighting, electronics, and more. The amount of electricity you consume is measured in kilowatt-hours, or kWh. You have control over how much energy you use, which can ultimately help manage your monthly costs.
Electricity Remains A Good Value
Although inflation has led to increasing costs in many areas of our lives, the cost of powering your home has risen slowly when compared to other common goods. Looking at price increases over the past five years, you’ll see that electricity remains a good value.
Average annual price increase 2017-2022
Source: U.S. Bureau of Labor Statistics
Consumer Price Index
