February usually brings some of the coldest weather of the year, and as our home heating systems work harder to keep us warm, we typically see higher electric bills.
There are a few key factors that affect electricity prices and ways you can make a meaningful impact on your own home energy costs.
When you receive your monthly bill from Pioneer Electric, you’ll see a summary of how much electricity you used during the billing cycle. You also see your demand for the month. These are areas of opportunity for you to adjust your habits and potentially save money on your power bill.
Beyond your monthly energy consumption and demand, external factors also impact the cost of electricity.
Fuel prices
Even though the cost of diesel fuel and gasoline affects our bottom line, the price of fuel used to generate electricity that has a more significant impact on the price you pay for power.
Pioneer Electric purchases electricity from our power generation partner, PowerSouth, at a wholesale cost. That cost accounts for about half the cost of providing electric service to our members. The cost of fuels used to generate that electricity — primarily natural gas — fluctuates like the cost of gasoline. To minimize the impact of these fluctuations on our members, PowerSouth makes strategic purchases when prices are favorable.
Extreme weather
While we can’t control the weather, we use historical data to predict weather patterns that could affect Pioneer Electric and our members. Extreme temperatures and severe weather have a tremendous impact on our business. From storms that knock out power to demand peaks that increase the cost of power, Mother Nature can take a toll.
Infrastructure and equipment
Pioneer Electric members pay a monthly access charge to cover the fixed costs associated with delivering power. We must maintain our electric grid, including power lines, substations and other essential equipment, to ensure the reliable service you expect and deserve. The access charge ensures the cost of delivering power is covered, regardless of how much power our members use.
Energy policy and regulations
Federal energy policy can have a profound impact on energy costs. As stricter regulations for always-available fuel sources (such as natural gas) are put in place, costly upgrades and technologies must be constructed and deployed. These additional costs are ultimately passed to consumers.
That’s why we’re working with members of Congress to advocate for smart energy policies that allow us to power our communities. We are urging the Trump Administration to take concrete steps to repeal the EPA’s power plant rule and bolster the long-term reliability and affordability of the nation’s power supply.
You have control
While many of these factors are out of our control, we all have the power to manage our energy use at home. The most effective way to lower your electric bill is thermostat management. Since heating and cooling make up the largest portion of your home energy usage, adjusting the thermostat to the lowest comfortable setting in winter can help you save energy and money.
Pioneer Electric is your energy partner, and we’re here to help. Call us or visit our website to learn about programs to help you save.
As always, we will continue working to provide you with reliable power at the lowest possible cost.