Understanding What’s Included in Your Energy Bill
Just like groceries and gas, energy costs generally change over time. Prices for fuels like natural gas and coal, which are used to generate energy, are affected by domestic and global demand and supply pressures. All the other costs to run a business generally increase as well. It stands to reason that over time these increases can affect what you pay on your electric and natural gas bills.
Your bill is made up of three main parts:
Generation Charges
This portion covers the cost of producing or buying energy. URE purchases electricity from Buckeye Power, which owns and operates generation plants on behalf of Ohio’s electric cooperatives. When fuel prices rise, so do generation costs. The Fuel Cost Adjustment on your bill reflects any changes in fuel costs and allows us to respond to market conditions without frequently changing base rates. Despite fluctuations in the market, URE’s generation rates have remained relatively stable over the past few years mostly because of our ownership of generation through Buckeye Power.
If you purchase natural gas from URE, your bill includes a CCF Commodity Charge, which reflects the cost of buying, storing, and transporting gas. Like electricity, natural gas prices vary month to month, and this charge helps us respond to those changes without constant rate updates.
Transmission Charges
After electricity is generated, it travels long distances through high-voltage transmission lines owned and maintained by investor-owned transmission companies outside our control. These lines are being upgraded across the region to support growing demand, including large loads like data centers. While it is important that any new large customers pay their share for dedicated facilities, some transmission costs are shared regionally. That means all consumers in the area (not just co-op members) may cover part of the increasing transmission costs. However, any shared investment should also improve reliability and increase capacity for all consumers.
Natural gas must also be sent long distances through transmission pipelines. Those transmission costs are bundled into the CCF Commodity Charge on your bill.
Distribution Charges
This portion of the bill covers the cost of delivering energy from our substations to your home. It includes maintaining poles along the roadway, wires, meters, and other equipment, as well as labor and service operations.
Similarly, the natural gas base charge and CCF Distribution charge pay for the operation and maintenance of our local natural gas system.
How You Can Save
As we enter the heating season, keep in mind that extreme weather can significantly increase energy use and the resulting energy bills, but you have tools to manage your energy use right now to avoid sticker shock. For instance, installing a programmable thermostat, sealing air leaks, and adjusting temperature settings when you’re away can help reduce your bill. See more tips on our ways to save page.
We’re Here to Help
We know higher bills can be frustrating. URE is committed to managing costs responsibly and helping you use energy wisely. Have questions? We’re here to help.
We work for you—after all, we’re YOUR electric cooperative!