
There are a few key factors that affect electricity prices, as well as some ways you can make a meaningful impact on home energy savings. When you receive your monthly bill from Orange County REMC, or log onto our SmartHub App, you’re provided with a summary of how much electricity you used during the billing cycle. You can even 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. But 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
Orange County REMC purchases electricity from our power generation partner, Hoosier Energy in Bloomington, Indiana, at a wholesale cost, then we deliver that power to our local communities. The cost of generating and transmitting electricity from our generation partner 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 Hoosier Energy 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 to your home or business, REMC members pay a monthly service charge. This flat monthly fee ensures the cost of equipment, materials, labor and daily operations are covered for all members in our service territory. To ensure the reliable service you expect and deserve, we must maintain the local grid, including power lines, substations and other essential equipment.
Energy Policy and Regulations
Federal energy policies and regulations can have a profound impact on electricity costs. We are urging the Trump Administration to take concrete steps to repeal the EPA’s power plant rule to help reduce costs and bolster the long-term reliability of the nation’s grid.
You Have Control
While many of these external factors that impact electricity costs are out of our control, we all have the power to manage our energy use at home. The most effective way to lower use is thermostat management. Since heating and cooling account for a major portion of home energy use, adjusting the thermostat to the lowest comfortable setting can help you save energy and money in the winter months. Be sure to seal air leaks around windows, doors and other areas where gaps are possible. This will help your heating and cooling system work less and improve the overall comfort of your home.
Orange County REMC is your local energy partner, and we’re here to help. Visit myremc.coop to learn about our efficiency programs designed to help you save. As always, we will continue working diligently to provide you with reliable power at an affordable cost.