Understanding Your Electric Bill
August is often one of the hottest months of the year in Ohio, which means air conditioners are working hard to keep homes and businesses comfortable. As temperatures climb, some of you may notice an increase in your electric bill and wonder what factors contribute to the cost of electricity.
That’s why we believe understanding your electric bill is important. While your bill overall may appear to be a single monthly charge, it reflects several components that work together to ensure safe, reliable electric service.
One of the biggest factors affecting your bill is the amount of electricity you use. Electricity consumption (the part of the bill you control) is measured in kilowatt-hours, and the more energy your household uses, the higher your bill will be. During the summer months, air conditioning is typically the largest contributor to increased energy use. When outdoor temperatures reach the upper 80s and 90s, cooling systems run longer and more frequently, resulting in higher electricity consumption.
Another factor is the cost of power itself. Pioneer Electric purchases electricity from Buckeye Power, the generation and transmission cooperative owned by Ohio’s electric cooperatives. The cost of generating electricity can fluctuate based on fuel prices, operating expenses and investments needed to maintain reliable power generation resources.
Before electricity reaches your home, it travels across a network of high-voltage transmission lines that connect power plants to local electric systems. Maintaining and expanding this transmission network requires significant investment to ensure electricity can be delivered reliably whenever it is needed.
Closer to home, Pioneer Electric maintains more than 2,800 miles of distribution lines, along with substations, transformers, poles, wire, and other equipment necessary to deliver electricity throughout our service territory. The monthly availability charge helps cover a portion of the fixed costs associated with operating and maintaining this infrastructure. Regardless of how much electricity is used, Pioneer must keep the system in place and ready to serve members 24 hours a day, seven days a week.
Understanding your electric bill is also important because the costs of providing electric service continue to change. Like many industries, electric utilities have experienced significant increases in the cost of equipment, materials and labor in recent years.
Summer weather can influence costs in less obvious ways. When electricity demand increases across the region, wholesale power costs can rise as utilities work to ensure adequate generation is available to meet peak demand. These periods of high demand, discussed in last month’s issue of Ohio Cooperative Living, place additional strain on the electric grid and can increase the overall cost of providing service.
The good news is that small changes can help manage energy use during the hottest months of the year. Setting your thermostat a few degrees higher when away from home, changing HVAC filters regularly, using ceiling fans, sealing air leaks, and limiting the use of major appliances during the hottest part of the day can all help reduce electricity consumption.
In a future issue, we’ll take a closer look at the investments required to maintain the reliable electric service our members depend on, and the challenges utilities across the country are facing as costs continue to rise.
As your electric cooperative, Pioneer is committed to providing reliable service and delivering value to our members. We continue to make investments in the electric system while working to operate efficiently and responsibly on behalf of the communities we serve.
