There are a few key factors that affect electricity prices, and while most of those are out of our hands and yours, there are a few ways you can make a meaningful impact on home energy savings.
The big drivers of electricity costs happen in the energy markets, the infrastructure goods supply chain and even with Mother Nature.
Generation Fuel Prices
The wholesale cost of electricity accounts for a significant portion of the cost of providing electricity to homes and businesses—and the cost of fuels used to generate that power fluctuate based on supply and demand.
While these fluctuations impact the cost of electricity, we work closely with our generation and transmission provider, Rayburn Electric Cooperative, to plan ahead and help stabilize electricity prices for our members. With the purchasing power of the four member cooperatives, and significant generation capacity, REC provides significant value in keeping energy prices as low as possible.
Extreme Weather
We can’t control the weather, but we do review weather patterns and forecasts to prepare for times of extreme cold or heat, when we know the demand for electricity will increase. When temperatures fluctuate and the demand for electricity spikes, the price of wholesale power typically goes up.
Infrastructure and Equipment
The operational side of electric service, including power lines and equipment, personnel and the costs of doing business are paid for by co-op members through the monthly customer charge and a portion of the per-kWh rate.
Inflation has significantly driven up the cost of materials, contributing in large part to the recently announced rate increase that will go into effect on April bills for usage after February 20th.
You Have Control
While many of these external factors are out of our control, we all have the power to manage our energy use at home. The most effective way to lower use is thermostat management.
Since heating and cooling account for a major portion of home energy use, adjusting the thermostat to the lowest comfortable setting for heating and highest for cooling can help you save energy and money. Remember to have your heating and cooling system checked annually and replace dirty filters as needed.
Your bill from Trinity Valley Electric Cooperative includes a summary of how much electricity you used during the billing cycle. You can even see when your electricity use may have spiked, such as a particularly cold or hot day. You can also help reduce wholesale energy costs for the co-op use by taking advantage of off-peak periods, when the demand for electricity is lower. Reserve energy-intensive chores for off-peak times—typically 8 p.m. to 7 a.m.
Be sure to seal air leaks around windows, doors and other areas where gaps are possible. This will help your heating and cooling system work less and improve the overall comfort of your home.
TVEC is your local energy partner, and we’re here to help. As always, we will continue working diligently to provide you with reliable power at an affordable cost.
