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 for generating power fluctuates, which is why you sometimes see a power cost recovery factor (PCRF) charge on your bill. This is only added when necessary, and helps avoid continually restructuring base 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. The service charge is applied to each meter or business in each rate structure to share costs equitably across the membership.
Weather
Weather is the largest single driver of energy consumption for residential consumers. 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.
Trinity Valley Electric Cooperative 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.
