Outside Factors that Impact Energy Bills
Posted on January 27th, 2025
February often brings some of the coldest weather of the year, leading to increased energy bills as heating systems work harder.
Several factors affect electricity usage and understanding them can help you save money. The First Electric app includes a summary of your electricity usage, showing spikes during colder days or when guests are over.
Fuel Prices
First Electric purchases electricity from Arkansas Electric Cooperative Corporation (AECC). The cost of generating and transmitting electricity varies due to fluctuations in fuel prices, such as natural gas. We collaborate with AECC to stabilize these costs for our members.
Extreme Weather
While we cannot control the weather, we analyze forecasts to prepare for increased electricity demand. Extreme temperatures can drive up prices due to higher energy consumption.
Infrastructure and Equipment
Members pay a monthly service availability charge to cover the costs of equipment, materials, labor and daily operations. Maintaining the local grid, including power lines and substations, is essential for reliable service.
Energy Policies
Federal policies significantly impact electricity costs. As we move towards more intermittent energy sources and face stricter regulations, additional expenses can arise, which may be passed on to consumers.
You Have Control
Although many cost-influencing factors are out of our control, you can manage your energy use at home.
Set your thermostat to the lowest comfortable level, service your heating and cooling systems annually, and replace dirty filters as needed.
To reduce energy consumption, utilize off-peak periods for energy-intensive tasks, and seal air leaks around your home.
We remain dedicated to providing reliable power at an affordable cost. For more energy-saving tips, visit firstelectric.coop/energy-saving-tips.