Bills will rise based on increased energy use, not price spikes
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Local TCEC members are hearing about high electric bills in Texas and wondering what effect the subfreezing temperatures in February is going to have on their own electric bill. “The price of electricity has not changed for our members and TCEC is not raising its rates,´ said TCEC CEO =ac Perkins. “However, electricity use did increase due to the cold weather, which will cause electric bills to be higher. How much higher depends on the habits of each individual member during the cold weather.´
Between February 8 and 18, for 10 days, outside temperatures did not rise above 30 degrees. These temperatures were extreme and unprecedented. This was a historic event for the state of Oklahoma and for the Southwest Power Pool (SPP). SPP has never been above an energy emergency alert level one in its 81-year history. The power grid was extremely strained due to the subfreezing temperatures. Power grids were tested like they’ve never been tested before.
“Most importantly, I’d like to thank our members for their patience and support during this historic event,´ Perkins said. “We will continue to communicate new information as it becomes available.´
What does the future hold"
Perkins said we do not know the full cost of these subfreezing temperatures yet and TCEC won’t speculate as to what this event is going to cost.
“TCEC is a not-forprofit cooperative, committed to protecting the financial interests of our membership,´ he added. “When natural gas was available for our generating plants, the price was extremely high. The spot market for electricity was also extremely high. TCEC is going to wait until all the investigations are done, see if there’s financial assistance for people, see what the government’s going to do, before we make any decisions on how those potential impacts will flow through to our members. Even if they do negatively impact the cooperative, we’re going to look at spreading those costs for members over a longer time rather than seeing a spike in bills immediately.´
Remember, energy use, which is the consumption of electricity, was substantially higher than normal. That is separate from price. The price will remain the same until we fully understand impacts on it. “Until we know what the financial ramifications of this event are, you can rest assured that TCEC is not going to put that through to your bill,´ Perkins said.
Why is my bill higher than my neighbor’s" Energy use is especially higher in homes that are heated with electricity and structures that are not well-insulated. Mobile homes are especially at risk of high bills in winter because they often are both all-electric and cold air can get under the home where it might not be as well insulated. Older homes may also have gaps in window seals and siding that might allow cold air to creep in. During extended cold periods, space heaters, electric fireplaces and electric blankets also reTuire significant demand of electricity, causing spikes in energy usage. If you set your thermostat to 68 degrees, as recommend during winter by the U.S. Department of Energy, and it’s 18 degrees outside, your heating systems must work hard to make up that 50-degree difference. Your HVAC unit and your water heater work harder and cycle on and off more often, making your usage much higher. That means your bill will be higher. Even when consumers use other sources of heat, often an electric blower is used to supplement a gas heater or fireplace which will run more during times of extreme cold and contribute to higher usage.
What can I do now" Prepare your home or business now for the next winter blast or extreme heat wave this summer. Consider adding necessary insulation in your attic to keep rising warm air from escaping through your roof. Also, call a professional HVAC technician to inspect and repair your system and be sure to change its filters once a month. Use caulk or weather stripping to close holes around doors, windows, outlets and trim where conditioned air can escape. Look for additional energy saving tips on TCEC’s website at www.tcec.coop/wayssave. Use SmartHub to track energy use, even unbilled use. You can also use SmartHub to set up notifications for power usage alerts to see when your electricity use is unusually high. Members can explore alternate payment options to see if they’re eligible for them.
•Levelized billing can help to make your electric bills more consistent. Instead of seeing higher bills in the winter and summer with low bills in the spring and fall, you will have a more consistent bill throughout the year. .eep in mind, Levelized billing is based on a twelve-month rolling average. That means extreme energy use swings may change your monthly payment.
•Pay As You Go is our prepaid option that puts you control of your electric bill.
Most importantly, if your bill is high and you’re unable to pay it, please contact TCEC to explore your options. TCEC can be reached at 580.652.2418 or info@ tcec.coop.