Chris Tackmann, General Manager & CEO
February brings some of the coldest weather of the year, and 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 prices, as well as a few ways you can make a mean
ingful impact on home energy savings.
When you receive your monthly bill from Oakdale Electric Cooperative (OEC), 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, by signing into SmartHub.
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
OEC purchases electricity from our power generation partner, Dairyland Power Cooperative (DPC), 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 DPC 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, OEC members pay a daily facility charge. This fee ensures the cost of equipment, materials, labor and daily operations are covered for all members in OEC’s 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. As energy generation shifts to the use of 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.
U.S. power consumption is expected to double by 2050. Across the country, electric cooperatives are working with members of Congress to advocate for smart energy policies that reliably power our local communities. We continue to urge the current and future Federal Administration to take concrete steps to bolster the long-term reliability of our 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. Remember to service your heating and cooling system annually and replace dirty filters as needed.
OEC is your local energy partner, and we’re here to help. Visit the Energy Solutions tab on the website 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.