Balancing Electricity Supply and Demand

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 Powell Valley Electric Cooperative, you’re provided with a summary of how much electricity you used during the billing cycle. However, you might be surprised to learn that beyond your monthly energy consumption, there are external factors that can impact the cost of electricity.

Powell Valley Electric Cooperative purchases electricity from the Tennessee Valley Authority at a wholesale cost; then we deliver that power to our local communities. The cost of generating and transmitting electricity accounts for a significant portion of the cost to provide electric service — and fuel costs fluctuate based on supply and demand.

While we can’t control the weather, we can review weather patterns and forecasts to prepare for times of extreme cold or heat — periods when we know the demand for electricity will increase. When temperatures become extremely cold and the demand for electricity spikes, the price of electricity can also increase.

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.

While many of the 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 electricity 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.

Be sure to seal air leaks around windows, doors and other areas where gaps are possible. This will reduce the strain on your heating and cooling system, enhancing the overall comfort of your home.

Powell Valley Electric Cooperative is your local energy partner, and we’re here to help. As always, we will continue working diligently to provide you with reliable power at an affordable cost.

— Brad Coppock