Factors That Impact Electricity Prices
Just as inflation has impacted everything from the price of gasoline to the price of eggs, costs for the fuels required to produce electricity have also risen.
While there is no short answer, there are a few key elements that impact electricity prices and rates. Some of these factors Oakdale Electric Cooperative (OEC) 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 facility charge, an energy charge, and a Power Cost Adjustment (PCA). To understand your total energy costs and what impacts your bill, lets unpack one piece at a time.
The first is a fixed monthly facility 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 OEC’s service territory, regardless of the amount of energy used. In order to ensure the reliable service you expect and deserve, we must maintain the local 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.
For example, the cost for an underground distribution transformer (which looks like a large green metal box) went from $1,605 in 2021 to $2,217 this year, and wait times to receive this essential equipment are up to 12 months. Because we are a not-for-profit cooperative, some of these expenses must be passed on to our members. I should note that the facility charge is the same for everyone and the costs are shared equally across the membership. Read more...
