The amount of power used by your household influences your electric bill. The time in which you use energy could also be a significant factor in your electricity price. For instance, the peak hours for electricity demand are highest in the afternoon and the early evening. During these peak hours, wholesale electricity prices are usually higher. Supply and demand affect the cost of how electric power gets to your home. Some electricity plans charge different rates at different times of the day because of this.
The Factors that Influence the Price of Electricity
Electricity supply costs vary minute by minute and are calculated per kilowatt hour (kWh).
Fuels: High demand for electricity can increase demand for fuels, including natural gas. Higher demand results in higher costs to generate electricity.
Power Plants: The cost of constructing, maintaining and operating power plants influences the price of electricity.
Transmission and Distribution: Maintenance is a factor in the price. Costs also include repairs from damage caused by accidents or extreme weather conditions. The expense of generating electricity is only a small part of electricity expenses. Much of the cost associated with supplying electricity to consumers is in the cost of transmitting the electricity from the power plant to the end user. This includes maintenance and upkeep on powerlines and relay stations along the way. These costs are passed on to consumers in the form of higher electricity rates.
Weather conditions: Rain and snow provide beneficial amounts of water for generating low-cost hydropower. Favorable wind speeds provide low-cost electricity generated by wind turbines. Extreme weather conditions can raise prices. The cost of electricity is usually highest in the summer when demand is high for cooling.
Regulations: Where you live has an influence on what you pay for electricity. Some states have fully regulated prices. Others have a combination of both. Many states have deregulated energy markets, including Texas, California and New York.
Pro Tips On How to Cut Down on Your Electricity Bill
If possible, try to do all your laundry, dishwashing and other power-intensive tasks during off-peak hours. Tip: Some electric companies charge more for power used during the day rather than at night.
Pick the Right Provider: Do some research and discover a provider that offers time-of-day pricing. This format encourages electricity conservation and can help reduce peak demand. You can also choose a provider that utilizes green energy.
Lower Your Thermostat: During the summer, adjust your thermostat to 80 degrees, and when you’re not at home, adjust to 62 degrees in the winter.
Turn off Ceiling Fans and Lights: When you circulate the air in your home, it can make you feel more comfortable. However, if you’re not home, turn them off. The same thing applies to lights. If you don’t need them on, turn them off.
Unplug: Unplug fixtures or switch off the power strips when they’re not in use. When you unplug unused devices, you can reduce what is called “vampire energy.”
Replace Old Appliances: Older appliances are less likely to employ energy efficiency technology. Upgrade to ENERGY STAR®-certified appliances such as refrigerators, washing machines and dishwashers. You can even upgrade to an ENERGY STAR®-certified television.
Visit www.VaultElectricity.com for more information on how to choose the right electrical service provider.