
Understanding Factors That Impact Your Energy Bills
February brings some more cold weather. When our home heating systems work harder to keep us warm, we typically see higher energy bills.
A few key factors affect electricity prices, but you also can make a meaningful impact on home energy savings.
Fuel Prices
Valley Electric Association (VEA) buys electricity from long-term power purchase agreements and the Western power market, then delivers it to our members. The cost of generating and transmitting electricity accounts for a significant portion of the cost of providing electric service - and the cost of fuels used to generate electricity, such as natural gas and coal, fluctuates based on supply and demand.
While these fluctuations can impact the cost of electricity, we budget and plan to help stabilize electricity prices for our members.
Extreme Weather
We can't control the weather, but we can review weather patterns and forecasts to prepare for times of extreme cold or heat when demand for electricity will increase. When temperatures become extremely cold and the electricity demand spikes, the price of electricity can also increase.
Infrastructure & Equipment
To cover the costs associated with providing electricity, Valley members pay a monthly basic service charge. This flat fee covers the costs of equipment, materials, and Valley's daily operations. We must maintain the local grid, including power lines, substations, and other essential equipment, to ensure the reliable service you expect and deserve.
Energy Policy & Regulations
Federal energy policies and regulations can have a profound impact on electricity costs. As energy generation shifts to more renewable sources and stricter regulations for traditional, always-available fuel sources, such as natural gas and coal plants, costly upgrades and technologies must be constructed and deployed. These additional costs are ultimately passed to consumers.
US power consumption is expected to double by 2050. Electric cooperatives are working with members of Congress to advocate for smart energy policies that reliably power our local communities.
You Have Control
While many external factors that impact electricity costs are out of our control, we can manage our energy use at home. Adjusting the thermostat to the lowest comfortable setting can help you save energy and money.
Service your heating and cooling system annually and perform regular maintenance.
You can also reduce energy use by sealing air leaks around windows, doors, and other areas where gaps are possible.
Valley Electric is your local energy partner, and we're here to help. Visit our website for efficiency tips to help you save. As always, we will continue working diligently to provide you with reliable power at an affordable cost.
Have a great month,
Robby Hamlin, CEO