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For Electric Cooperative Members
For Electric Cooperative Members

4 Key Factors That Impact Energy Bills

Understanding the components that make up your monthly charges

There are several factors that impact the energy bill you pay each month. Because daily costs of living seem to have increased across the board, the factors that affect electricity prices are a timely topic.

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 fuel fluctuates, which is why you see a power or fuel charge on your monthly bill. This monthly charge covers cost fluctuations without your co-op 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, wires, meters, system maintenance and additional costs necessary to provide electric service. Supply chain issues and cost increases for basic equipment such as distribution transformers affect your cooperative. The service charge is the same for everyone, and the costs are shared equally across the membership.


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 affect 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 heating and cooling system, appliances, lighting, electronics, and more. The amount of electricity you consume is measured in kilowatt-hours. You have control over how much energy you use, which can ultimately help manage your monthly costs.

Your co-op is here to help you, too. Contact us if you have questions about your energy bill or want advice on how to save energy at home.