In the last article, we explained the Access Charge—the fixed portion of your bill that helps cover the cost of keeping electric service available. Now, we’re taking a closer look at the Energy Charge. For most members, it’s the largest portion of your monthly bill, but it’s also the part of your bill you can control the most. 

What is the Energy Charge?
The Energy Charge is based on how much electricity you use, measured in kilowatt-hours (kWh). On your bill, it shows up as “Electric Usage.”

It reflects the variable costs Pioneer Electric incurs to purchase and deliver that electricity to your home or business.

Every light you flip on, every appliance you run, every hour your HVAC system is working — all of that usage adds up and is measured by your meter. At the end of each billing cycle, the total number of kilowatt-hours is multiplied by the energy rate to calculate the Energy Charge.

What does it cover?
The Energy Charge includes:

• The cost to purchase wholesale electricity from our power supplier;
• Operational costs associated with delivering power; and
• A portion of the fixed costs not collected through the Access Charge.
• This is the part of your electric bill that varies the most because it’s directly affected by your habits and usage patterns.

How weather impacts your usage
One of the biggest drivers of energy use is weather, especially when it comes to heating and cooling.

Hot summers lead to higher air conditioning use, which is one of the largest energy loads in most homes.

Cold winters increase usage from electric heating systems and space heaters.

Even mild swings in temperature can cause your HVAC system to cycle more often, raising your overall usage.

This is why your bill might rise—even if your habits haven’t changed—because extreme temperatures cause your home’s systems to work harder to maintain comfort. That higher usage translates into more kilowatt-hours, which increases the Energy Charge on your bill.

You have the power 
While parts of your electric bill are fixed, the Energy Charge is where you have the most control.

Simple steps like adjusting your thermostat, taking short showers, or limiting large appliance use can reduce your usage and lower your bill. Investments in efficient heating and cooling systems, insulation and weatherization can make an even more noticeable reduction in usage.

In my next article, we’ll break down the Demand Charge—a cost that’s tied not just to how much electricity you use over time, but how much you use at one time. For Pioneer Electric, demand is one of the biggest drivers of wholesale power costs, and it’s an important piece of the rate puzzle.