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Why is my bill rising?
November, 2008
 Electric cooperative members will be paying more for electricity because the cost of fuel to generate power is rising.
Most of the fuel to make the electricity provided by cooperatives is coal. And coal prices have shot up largely because of exports of America's coal reserves to Asia.
York Electric Cooperative purchases wholesale power for members through a jointly owned generation and transmission co-op, Central Electric Power Cooperative. Central procures power on behalf of all 19 other distribution cooperatives in South Carolina as well as York Electric Cooperative. Central purchases this power from the state-owned utility, Santee Cooper.
Market prices have skyrocketed for both coal and natural gas. The increases are traced to rising overseas demand for these fuels, particularly from China and India. Coal prices were up more than 100 percent compared to this time last year.
Coal from the Appalachian states of West Virginia, Kentucky and Virginia is being bought up, loaded on ships in the Chesapeake Bay and hauled overseas to China and India for electric power and steel production on the other side of the planet. The reality is that coal and natural gas have become global commodities and are sold to the highest bidders, and often they are overseas.
Unfortunately, that means coal and natural gas must be purchased at inflated prices in order to keep the lights on, just like the gasoline most of us must buy to get to and from work.
In July 2007, the price for a ton of coal, including the cost to deliver it to a power plant, was about $65 to $70 per ton. This July, exports helped drive up prices for delivered coal to upwards of $160 per ton.
The cost of natural gas has also been increasing, with significant price spikes in recent years. Market prices for natural gas were $8 per million Btu a year ago, compared to as high as $14 this July. (Btu stands for British thermal units, a measure of the heat value or energy content of fuels.)
Our best advice is to use energy wisely. Make sure you have replaced old light bulbs with the compact fluorescent bulbs sent to you by your cooperative. Read and take advantage of energy-saving tips in South Carolina Living Magazine and here at www.yorkelectric.net. Links are also available to connect you to the Touchstone Energy site. Keep on the lookout for new programs your electric cooperative is developing to help you save energy.
Paul Basha
President and
Chief Executive Officer
Related Links:
Co-op expects increase in power costs in early 2009 »
Touchstone Energy Home Energy Audit
Touchstone Energy Light Bulb Energy Saver »
Save Energy »
Levelized Billing »
DoTheLightSwitch.com
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CFLs available for 3-way switches, recessed fixtures
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