August is typically one of the warmest months of the year, and that means air conditioners across our community are working overtime to keep homes comfortable. During periods of extreme heat, many members may see an increase on their electric bill and wonder what factors contribute to the cost of electricity.
We at Y-W Electric Association, Inc., believe understanding your electric bill is an important part of being an informed member. While the total amount due may seem like a single number, it actually reflects several different costs associated with delivering reliable electricity to your home or business.
The largest factor to your electric bill is often the amount of energy you use. Electricity use is measured in kilowatt-hours, and the more energy your household consumes, the higher your bill will be. During the summer, air conditioning is typically the largest driver of increased energy use in your home or business. When temperatures climb into the 90s or higher, our cooling systems run longer and more frequently, and consume significantly more electricity than they do during milder weather.
Another charge you’ll see on your electric bill is a demand charge. Demand is measured in kilowatts and is a measure of how fast you are using electricity. Like many cooperatives, Y-W Electric purchases power from Tri-State Generation and Transmission Association. We get billed for electricity in a similar format, energy (kWh) and demand (kW).
Y-W Electric maintains the local electric distribution system — utility poles, power lines, transformers, substations, and other essential equipment that safely delivers power to members. The costs of maintaining this equipment are covered by the monthly service charge. This is a flat monthly fee all members pay, regardless of how much electricity they use. This fixed fee ensures all members pay a fair share of the basic operational costs required to keep the power grid reliable and ready to serve your home or business. Whether a member uses a little electricity or a lot, we must maintain infrastructure and have crews, equipment, and resources available to provide electricity around the clock.
Summer temperatures can also influence costs in less obvious ways. For examples, on a hot afternoon when everyone’s air conditions kick on, the demand for electricity increases. When the demand for electricity is high across a region, wholesale power prices can also increase. Utilities and grid operators must ensure enough generation is available to meet peak demand, and those costs can be reflected throughout the electric system.
The good news is that simple steps to lower your energy use can make a meaningful difference. Setting your thermostat a few degrees higher when you’re away, replacing dirty filters, using ceiling fans, sealing air leaks, and avoiding the use of major appliances during the hottest parts of the day can help reduce energy consumption, lower your bill, and reduce strain on the local grid during peak demand.
Y-W Electric’s mission is to provide safe, reliable, and affordable electricity while being transparent about the factors that impact energy costs. We understand every dollar matters, and we are committed to making smart investments that keep the lights on and support the communities we serve.
If you ever have questions about your electric bill or co-op programs designed to help you save, please reach out. We’re here to help you make informed decisions that work for your home or business.
Thank you for allowing us at Y-W Electric Association serve you.
Trent Loutensock is the General Manager at Y-W Electric Association.
