Feb 5, 2025
Factors that Impact Your Energy Bills
February brings some of the coldest weather of the year. As our home 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 usage, as well as a few ways you can make a meaningful impact on home energy savings.
Fuel Prices
Clay County Electric purchases electricity from our wholesale generation electric cooperative, Arkansas Electric Cooperative Corporation (AECC), then we deliver power to our local communities. The cost of generating and transmitting electricity from AECC accounts for a significant portion of the cost to provide electric service to local homes and businesses. The cost of fuels used to generate that electricity, such as natural gas, fluctuates based on supply and demand. While these fluctuations can impact the cost of electricity, we work closely with AECC to plan and help stabilize the cost to our members.
Extreme Weather
As everyone knows, no one can control the weather. However, we review weather patterns and forecasts to prepare for increased electricity demand. When temperatures become extremely cold or hot and the demand for electricity spikes, the price can also increase.
Infrastructure and Equipment
To cover the costs associated with providing electricity to homes or businesses, members pay a monthly service availability charge. This flat monthly fee ensures the cost of equipment, materials, labor and daily operations are covered. To ensure the reliable service members expect and deserve, we must maintain the local grid, including power lines, substations and other equipment.
Energy Policy and Regulations
Federal energy policies and regulations can have a profound impact on electricity costs. As energy shifts to intermittent sources and stricter regulations for reliable resources like natural gas and coal increase, costly upgrades and new facilities are needed. These additional costs are ultimately passed on to you.
As the demand for power consumption continues to increase, electric cooperatives are working with members of Congress to advocate for common-sense energy policies.
You Have Control
While many external factors that impact electricity costs are out of our control, you have the power to manage energy use at home. Since heating and cooling account for a major portion of home energy use, adjusting the thermostat to the lowest comfortable setting can help save energy and money. Service your heating and cooling system annually, and replace dirty filters as needed.
Reduce energy use by taking advantage of off-peak periods, when the demand for electricity is lower. Reserve energy-intensive chores for off-peak times, such as early mornings or late evenings. Seal air leaks around windows, doors and other areas where gaps are possible to help your heating and cooling system work less.
As always, we continue to work diligently to provide reliable power at an affordable cost.