Understanding your electric bill
August is typically one of the warmest months of the year, and that means air conditioners across our community are working overtime to keep homes comfortable. During periods of extreme heat, many members may see an increase in their electric bill and wonder what factors contribute to the cost of electricity.
At Fulton County REMC (FCREMC), we believe understanding your electric bill is an important part of being an informed member. While the total amount due may seem like a single number, it actually reflects several different costs associated with delivering reliable electricity to your home or business.
The largest factor is often the amount of energy you use. Electricity is measured in kilowatt-hours (kWh), and the more energy your household consumes, the higher your bill will be. During the summer, air conditioning is typically the largest driver of increased energy use. When temperatures climb into the 90s or higher, our cooling systems run longer and more frequently, consuming significantly more electricity than they do during milder weather.
Another major factor is the cost of generating or purchasing electricity. Like many cooperatives, FCREMC purchases power from Wabash Valley Power Alliance (WVPA). The cost of producing electricity fluctuates based on fuel prices, including natural gas, coal and other energy resources used to generate power. Changes in wholesale power costs influence the price of electricity delivered to members. Transmission costs also play a role. Before electricity reaches your home, it must travel across a network of high-voltage transmission lines that connect power plants to local distribution systems. Transmission equipment requires ongoing maintenance and upgrades to ensure reliability, especially as electricity demand continues to grow. Most of the generation and transmission cost are included in the kWh charge while fuel and market price fluctuations are included in the power cost adjustment.
Closer to home, FCREMC maintains the local electric distribution system—utility poles, power lines, transformers, substations and other essential equipment that safely delivers power to members. Maintaining this equipment is covered through the monthly cost of service charge. This is a flat monthly fee all members pay, regardless of how much electricity they use. This fixed fee ensures all members pay a fair share of the basic, operational costs required to keep the power grid reliable and ready to serve your home or business. Whether a member uses a little electricity or a lot, we must maintain infrastructure and have crews, equipment and resources available to provide electricity around the clock.
Summer temperatures can also influence costs in less obvious ways. When the demand for electricity is high across a region, wholesale power prices can increase. Utilities and grid operators must ensure enough generation is available to meet peak demand, and those costs can be reflected throughout the electric system.
The good news is that simple steps to lower energy use can make a meaningful difference. Setting your thermostat a few degrees higher when you’re away, replacing dirty HVAC filters, using ceiling fans, sealing air leaks and avoiding the use of major appliances during the hottest parts of the day can help reduce energy consumption, lower your bill and reduce strain on the local grid during peak demand.
FCREMC’s mission is to provide safe, reliable, and the most cost effective electricity while being transparent about the factors that impact energy costs. We understand every dollar matters, and we are committed to making smart investments that keep the lights on and support the communities we serve.
If you ever have questions about your electric bill or co-op programs designed to help you save, please reach out. We’re here to help you make informed decisions that work for your household.
Thank you for allowing FCREMC to serve you.