By Patrick Soukup, Manager of Member Services and Marketing
Understanding the Rising Cost of Electricity
As we navigate the changing seasons, many of us have noticed a significant increase in our electricity bills. The rising cost of electricity is becoming a pressing concern for households and businesses alike, prompting discussions about its impact on our daily lives.
By comparison, South Dakotans are in a good position, and we pay considerably less for energy than consumers in other parts of the country. According to the U.S. Energy Information Administration (eia.gov), the price of electricity for residential end-users in South Dakota was 12.42 cents per kilowatt hour in December 2024, while New Yorkers paid 24.37 cents and Californians paid 30.55 cents during the same timeframe.
However, with a recent rate adjustment and the colder weather hitting, we understand your winter electric bills may be higher than expected.
Why Are Prices Increasing?
There are a number of factors affecting the cost of electricity across the United States. Increased demand for electricity is one factor. As more people rely on electricity for heating, cooling, and powering their devices, demand for energy continues to rise.
Fuel prices also affect the price of power. Natural gas, coal and oil have been volatile. When fuel prices rise, power wholesalers must pass those costs on to member cooperatives like East River and Central Electric.
Infrastructure upgrades are a contributing factor as well. Replacing infrastructure requires a significant investment, but it’s required to maintain reliability and efficiency. Those ongoing costs are reflected in our rates.
Lastly, regulatory challenges have affected power costs. Environmental regulations aimed at reducing carbon emissions have impacted the cost of generating electricity. Transitioning to renewable energy sources, while beneficial for the environment, may initially lead to higher costs as systems are updated and new technologies are implemented.
Resources for Members
The rising cost of electricity is a complex issue that affects us all. Understanding how and when you use electricity can help you make informed decisions to reduce your usage and lower your bills. Let’s continue to support one another and explore solutions that promote energy efficiency.
For more information, please call Central Electric at 800-477-2892. Together, we can navigate these challenges.