Economic disruptions and rising utility costs

Posted on Jul 28 2022 in Harrison REMC

Record high inflation, supply chain disruptions and the war in Ukraine are having a dramatic impact on our costs to supply electricity. Specifically, natural gas, coal and power costs represent 35-40% of Harrison REMC’s annual operating costs. In less than a year, these costs have increased 150% and are continuing to rise.

This is a result of global supply and demand. Even here in Indiana, we are impacted by the global economy, including the demand for U.S. coal in China and U.S. liquified natural gas (LNG) in Europe. This demand has been the largest driver of these cost increases.

The tight labor market and disruptions to global supply chains are also creating challenges with getting skilled people and materials we need to operate and maintain the system. 

Harrison REMC and Hoosier Energy are both non-profit organizations owned by those we serve, including you. Hoosier Energy generates and transmits electric power, and we distribute the power to homes, farms and businesses. 

Both of our cooperatives have reviewed plans and budgets and have taken action to postpone projects and reduce costs while not jeopardizing reliability of the system.

The global nature of these challenges makes it difficult to know exactly how long prices may remain elevated. However, we expect the challenging environment to continue into the foreseeable future, possibly the next few years. 

Harrison REMC also has several programs to help you optimize your energy consumption. Please call or visit our website to learn more about these programs. 

Please know we will continue to do everything we can to minimize the impact to you. You can help minimize that impact by taking action to reduce electricity consumption. 

  • Turn off lights. 
  • Adjust your thermostat a little higher this summer. 
  • Consider a smart thermostat if you don’t already have one.