Why is my electric bill so high? News 40 explains
BOWLING GREEN, Ky.-If you were hoping the soaring cost of your electric bill would drop as the cooler months roll in, think again.
“You’re probably going to see some specific increases in utility costs over and above what you normally see in a winter season,” said WKU Assistant Professor of Finance Jon Handy.
Right now, 1 in 6 people cannot pay their electric bill.
“At the end of the day when you have those commodity price changes, it’s the consumer that ultimately bears the brunt of that,” said BGMU General Manager Mark Iverson.
You might wonder, why is my electric bill going up?
There’s multiple explanations for that. The Russia-Ukraine conflict has strained global energy supplies…increasing the cost of gas.
“The Russia-Ukraine conflict has really created some major natural resources supply issues for Europe,” said Handy.
While we don’t import gas from Russia, many parts of Europe did. Now they have looked to the U.S. for gas…increasing demand. When demand goes up, and supply goes down, prices increase.
Locally, BGMU gets energy from the Tennessee Valley Authority. TVA burns gas, one of their energy sources for electricity… reflecting a higher price on your bill.
“What’s really variable is the fuels cost. There is a monthly adjustment for the cost of fuels that reflects that market pricing. that does create variability,” said Iverson.
Another reason is that electric bills change seasonally. When it gets colder you are using more energy to keep your house warm
“It’s colder and you’re just using more. Air conditioning bills tend to go up in the summer because you’re using it more and in the winter because you’re using it more,” said Handy.