VALUE OF ELECTRICITY

By Josh Filler, Vice President & Chief Operating Officer - Electric Operations

Most of us rely on electricity daily. Its widespread availability and the ease of accessing it with a simple flip of a switch make it easy to overlook how essential it truly is.

According to the Energy Information Agency (EIA), the typical U.S. household now uses more air conditioning, appliances and electronics than ever before. The average home contains 10 or more internet-connected devices. Considering everything that is powered by electricity, it is no wonder we might wince at our monthly bill. Keep in mind, it is no longer just a “light bill”.

Electricity Powers Quality Of Life

Electricity powers our quality of life. From the infrastructure of your home (appliances, water heater and HVAC system) to powering your devices, your electric bill covers so much more than lighting.

Today, there is more demand for electricity than ever before. The need for electricity is increasing not only in our homes but also in schools, businesses and commercial sectors, including transportation.

Typically, when demand goes up, so does the price, as is the case with most goods or services, like cable or even your favorite specialty coffee. However, that is not true with electricity. Let us look at how the value of electricity compares to other common expenses.

Comparing To Common Expenses

The average cost of electricity nationwide is $0.16/kWh. Compare that to some of the other things that we tend to buy without even thinking about the value. The cost of your favorite latte in the morning would power your refrigerator for the entire month or your laptop computer for 620 hours. The cost of a gallon of milk would run your air conditioner for an entire day in the summer.

The bottom line is that electricity perhaps represents the greatest value in the modern economy. While we think nothing of spending $5 on a coffee that lasts 20 minutes, that same $5 worth of electricity can power our entire home for hours, charge our electric vehicle for days of driving, or keep our food fresh for weeks.

Electricity is not just affordable; it is dramatically underpriced relative to the enormous value and convenience it provides in modern life.

We understand that electricity is more than a commodity–it is a necessity. That is why The Energy Cooperative continues to work hard to power your life, safely, reliably and affordably.