Understanding Factors that Impact Your Energy Bills

February often ushers in some of the coldest weather of the year, causing home heating systems to run harder and longer to keep us warm. This increased energy usage typically leads to higher energy bills.

Several key factors influence electricity prices, but there are actionable steps you can take to reduce energy consumption at home. When you receive your monthly bill from Owen Electric Cooperative, it includes a summary of how much electricity you used during the billing cycle. It even highlights patterns, such as spikes in energy use over the course of the previous year.

However, beyond your household’s energy use, external factors also impact electricity costs:

Fuel Prices

Owen Electric purchases electricity at from East Kentucky Power Cooperative (EKPC), our power generation and transmission provider. Generating and transmitting electricity constitutes a large portion of the cost to provide electric service to homes and businesses. Fuel prices—such as those for natural gas and coal—fluctuate based on supply and demand, and these changes affect electricity costs. We work closely with EKPC to stabilize prices and minimize the impact of fuel price volatility on our members.

Extreme Weather

While we can’t control the weather, we monitor patterns and forecasts to prepare for periods of extreme cold or heat when electricity demand tends to spike. These spikes often result in increased energy consumption at your home, driving an increase in your bill.

Infrastructure and Equipment

To cover the costs of delivering electricity, Owen Electric members pay a flat monthly customer charge. This fee supports the maintenance of essential infrastructure like power lines and other equipment, ensuring reliable service for all members.

Energy Policy and Regulations

Federal energy policies and regulations significantly influence electricity costs. As the energy industry transitions toward renewable sources and implements stricter regulations for traditional fuel sources, such as natural gas and coal, utilities must make costly upgrades. These expenses are passed along to consumers. With U.S. power consumption expected to double by 2050, electric cooperatives across the country are advocating for smart energy policies to support reliable, affordable power.

Taking Control of Your Energy Use

While some factors affecting electricity costs are beyond our control, you can take steps to manage your energy use at home. Adjusting your thermostat to the lowest comfortable setting is one of the most effective ways to save energy and money, as heating and cooling represent a significant portion of household energy use. Remember to service your HVAC system annually and replace filters as needed.

At Owen Electric, we’re your energy partner, committed to helping you save. Visit owenelectric.com to explore efficiency programs designed to lower energy use, or schedule a free in-home energy audit. As always, we remain dedicated to providing reliable power at an affordable cost.