Understanding Factors That Impact Your

Energy Bills

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 meaningful 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.

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.

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