Holding the Line on Winter Power Costs

Because of our publication schedule, I’m writing this column in early February, while winter is still on everyone’s minds. That timing is important because January and February are two of the most critical months of the year when it comes to electricity use, wholesale power costs and how those factors ultimately affect your bill.

January marked the start of our rate realignment and reminded us of how winter weather impacts energy use. We experienced a relatively cold January, with 15 days of below-freezing temperatures across our service area. When temperatures drop, heating systems run longer, water heaters work harder, and households use more electricity overall. That increase doesn’t just affect individual homes, it affects the entire cooperative.

January and February are considered “peak” months because demand is high. To help lessen the impact on members’ budgets, we discount the wholesale power adjustment (or fuel adder) during these peak months. This charge is passed down from our wholesale power provider, and by discounting it in January and February, the cooperative absorbs some of that cost.

We do this because we know winter bills can be challenging, especially during prolonged cold weather. As a not-for-profit, member-owned cooperative, our focus is not on generating profit but on providing reliable electricity at the lowest possible cost. Discounting the wholesale power adjustment during peak months is one way we work to manage rising power costs while keeping members in mind.

Another key factor during winter is our coincidental peak. Our wholesale power provider, PowerSouth, sets demand charges based on the single highest hour of electricity use across the system. That hour, known as the coincidental peak, typically occurs on a cold morning when heating systems are running at full capacity.

This year, our coincidental peak was set at 7:45 a.m. on February 1 when the temperature in Greenville was 17 degrees. That hour will result in at least $500,000 in excess demand charges from PowerSouth that we [our members] will pay throughout the year. While it may seem surprising that one hour can have such a lasting financial impact, demand charges make up a significant portion of Pioneer Electric’s costs and are driven by how much electricity our members use at the same time.

Members play a direct role in managing these costs. While the winter peak has likely already occurred, there are still ways to reduce future demand-related expenses for both your home and the cooperative as a whole.

On very cold mornings, small changes can make a measurable difference. Lowering your thermostat a few degrees, even for a short time, can reduce demand during critical hours. Delaying energy-intensive household tasks like laundry, oven use and running the dishwasher until later in the day also helps spread energy use more evenly across the system.

It’s important to remember that the members are the co-op. When the cooperative saves money, those savings come back to you through more stable rates and lower long-term costs. Reducing demand isn’t just good for the system, it’s good for your wallet.

We encourage members to explore available rate options, including our time-of-use rate. This rate rewards members for shifting energy use away from peak hours. If you’re willing and able to adjust when you use electricity, time-of-use pricing can offer direct savings to you while helping the cooperative better manage demand.

Our team is available to answer questions, review your bill with you and help identify options that may better fit your household’s needs. Thank you for the role you play in helping us power our community wisely, especially during critical winter months.