Why your electric bill is going up
Everyone is feeling the effect of higher electric bills, whether you are served by CoServ, a municipal utility or live in the deregulated electricity market.
CoServ wants to be open, transparent and proactive so our Members know why their energy bills are rising and are aware of potential options that could save them money.
As we reported in the December edition of this magazine, natural gas prices increased significantly in the latter half of 2021 and have maintained their momentum in early 2022. CoServ paid more for wholesale electricity as the price of natural gas went up.
Because of these fluctuations in pricing, CoServ makes adjustments to your actual energy charge using the Power Cost Recovery Factor (PCRF). CoServ projects what the cost of power will be based on historical pricing and then recalculates this each month for accuracy. As wholesale electricity prices increase, CoServ has had to adjust the PCRF to account for the higher costs.
In January 2021, the PCRF was -0.039, which cut 3.9 cents off the Standard base rate as your electric bill was calculated. By comparison, in January 2022 the PCRF was -0.01 which cuts just 1 cent off the Standard base rate for your bill.
So, if you used 1,000 kilowatt-hours of electricity in January, your bill will be about $30 higher than if you had the same usage a year ago.
“For 85 years, CoServ has provided safe and reliable electricity at an affordable rate and that commitment doesn’t change with the recent increase in energy prices,” said Stephen Meers, Director of Customer Operations. “CoServ’s electricity prices are subject to market forces but we never mark the price up for profit.”
Everyone is feeling the effect of higher electric bills, whether you are served by CoServ, a municipal utility or live in the deregulated electricity market.
CoServ wants to be open, transparent and proactive so our Members know why their energy bills are rising and are aware of potential options that could save them money.
As we reported in the December edition of this magazine, natural gas prices increased significantly in the latter half of 2021 and have maintained their momentum in early 2022. CoServ paid more for wholesale electricity as the price of natural gas went up.
Because of these fluctuations in pricing, CoServ makes adjustments to your actual energy charge using the Power Cost Recovery Factor (PCRF). CoServ projects what the cost of power will be based on historical pricing and then recalculates this each month for accuracy. As wholesale electricity prices increase, CoServ has had to adjust the PCRF to account for the higher costs.
In January 2021, the PCRF was -0.039, which cut 3.9 cents off the Standard base rate as your electric bill was calculated. By comparison, in January 2022 the PCRF was -0.01 which cuts just 1 cent off the Standard base rate for your bill.
So, if you used 1,000 kilowatt-hours of electricity in January, your bill will be about $30 higher than if you had the same usage a year ago.
“For 85 years, CoServ has provided safe and reliable electricity at an affordable rate and that commitment doesn’t change with the recent increase in energy prices,” said Stephen Meers, Director of Customer Operations. “CoServ’s electricity prices are subject to market forces but we never mark the price up for profit.”
Concerned about high bills?
Budget Billing
Budget Billing protects you from extreme seasonal changes that could cause your bill to spike. It takes an average of your usage so your bill is the same each month and is recalculated every six months.
Did you know that CoServ also offers three different rate plans and each one can be combined with Budget Billing?
Standard residential rate: Perfect for everyone with no gimmicks, no hidden fees or expiration dates.
Summer Savings: Perfect for someone who can shift electricity usage away from the peak hours of the day during the hottest months.
Solar Savings: Perfect for someone who wants 100% renewable energy without the upfront cost or long-term commitment of installing solar panels.
Visit CoServ.com/Rates for more information on the Rate Plans.
Our Customer Care Specialists can analyze your account and billing history to determine if you would save money under a different rate plan. As always, there are no gimmicks or tricks here – our Customer Care Specialists truly want what is best for you! Call us at 940-321-7800 or email us at [email protected].