March can bring some of the coldest weather that we experience all year, and as our home and business heating systems work harder and longer to keep us warm, we typically see higher energy bills.
There are a few key factors that affect electricity prices, as well as a few ways you can make a meaningful impact on home energy savings.
When you receive your monthly bill from K.C. Electric Association, you’re provided with a summary of how much electricity you used during the billing cycle. For more detailed usage information, log in to your account via our website or download the SmartHub app. This enables you to see how electricity use may have spiked on days when you used more electricity, such as a particularly chilly day or when relatives were staying with you. When the weather gets extremely cold, many of our members plug in their pickups, trucks, tractors, and tank heaters, which can substantially increase electric usage throughout the month.
You might be surprised to learn that beyond your monthly energy consumption, there are external factors that can impact the cost of electricity.
FUEL PRICES
K.C. Electric purchases electricity from Tri-State Generation and Transmission Association at a wholesale cost, then we deliver that power to our local communities. The cost of generating and transmitting electricity from Tri-State accounts for a significant portion of the cost to provide electric service to local homes and businesses — and the cost of fuels that are used to generate that electricity, such as natural gas and coal, fluctuate based on supply and demand. While these fluctuations can impact the cost of electricity, we work closely with Tri-State to plan ahead and help stabilize electricity prices for our members.
EXTREME WEATHER
While we can’t control the weather, we can review weather patterns and forecasts to prepare for times of extreme cold or heat, when we know the demand for electricity will increase. But when temperatures become extremely cold and the demand for electricity spikes, the price of electricity can also increase.
INFRASTRUCTURE AND EQUIPMENT
To cover the costs associated with providing electricity for your home or business, K.C. Electric members pay a monthly facility charge. This flat, monthly fee covers the cost of equipment, materials, labor, and daily operations for all members in our service territory. To ensure we can provide the reliable service you expect and deserve, we must maintain the local grid — including power lines, substations, and other essential equipment.
Author: David Churchwell, General Manager
