Just as inflation has impacted everything from the price of gasoline to the price of eggs, costs for the resources required to produce electricity have also risen. We would like to help our members understand some of the factors that impact electricity prices (and energy bills).

While there is no short answer, there are a few key elements that impact electricity prices and rates. Some of these factors Access Energy Cooperative can manage, some of them you can impact, and other factors are beyond our control. There are three primary parts to your monthly electric bill: a base charge, an energy charge, and a demand charge.

The first is the base charge, which covers the costs associated with providing electricity to your home. This includes equipment, materials, labor, and operating costs necessary to serve each meter in Access Energy Cooperative’s service territory, regardless of the amount of energy used. In order to ensure the safe, reliable, efficient service you expect, we must maintain the system, including power lines, substations and other necessary equipment. Like many other businesses, we’ve experienced supply chain issues and steep cost increases for some of our basic equipment. Because we are a not-for-profit cooperative, some of these expenses must be passed on to our members. The base charge costs for each rate class are determined during a cost of service study, conducted by a third-party every three years. The board of directors reviews the study and determines when a change in the base charge needs to be made. 

Another component of your monthly bill is the energy charge, which covers how much energy you consume. This is determined by reading your meter each month. The amount of energy you use can vary from month to month and is typically impacted by extreme temperatures. When temperatures soar or dip, your cooling and heating equipment run longer, which increases your home energy use. Regardless, energy consumption is an area that you have some control over, and you can lower your monthly bill by actively reducing energy use. Your thermostat is a great place to start, so be sure to keep it close to 78 degrees during summer months.

            The last component of your bill is the demand charge. Currently there is no charge associated with the demand charge; we are providing this information so members can monitor how they use power. Your bill also shows the date when you set your highest demand of energy use during that billing period. The more electrical items you use at the same time, the higher the demand you will set each month. By changing your energy use habits and not using so many devices at the same time, you can even out your usage and make your demand more stable each month. This helps your cooperative avoid setting a new demand on their system and helps keep rates more stable.

            While we can’t control the weather or the rising costs of fuels, please know Access Energy Cooperative continually works every single day to keep internal costs down. We’re here to help you do the same. Contact us if you have questions about your energy bill or for advice on how to save energy at home at 1-866-242-4232 or email to contactus@accessenergycoop.com