How the cost of electricity remains stable

Posted on Aug 25 2021 in Energy
Man in kitchen

By Larry Edwards

As we go grocery shopping or fill up at a gas station, we see first-hand how the cost of goods fluctuate. 

Today, price changes are driven by factors beyond supply and demand. Cyber attacks can shut down systems as seen in the ransomware attacks on the Colonial Pipeline and meat processor JBS. Global supply chain shortages can halt manufacturing as seen in the computer chip shortage affecting the automotive industry. When these issues happen, prices can increase for      consumers like you.

Your electric co-op and its power provider — both based right here in Indiana —are committed to serving members like you. Co-ops understand the challenges Hoosiers face and we work to keep costs stable while improving the resiliency of the grid.

The electricity you use is generated and transmitted regionally. It is monitored by an Independent System Operator (ISO) which looks at energy demand and what generating resources will be needed every day. This process helps us manage energy demands.

The structures in place that monitor, protect and supply energy to your home are constantly reviewed by your co-op, energy supplier and the ISO. This level of analysis is one reason electric costs have not seen dramatic increases during the past three decades.

Locally-owned operations and constant review of systems for security and safety, through the cooperative business model, are just a few reasons electric costs remain stable for members like you.

Cost of common household items

LARRY JOHNSON is supervisor of engineering services at Clark County REMC in Sellersburg, Indiana.