President’s Message – February 2025

Understanding Factors That Impact Your Energy Bill

February often brings some of the coldest weather of the year. As home heating systems work harder to keep us warm, we typically see higher energy bills.

When you receive your monthly bill from Gulf Coast Electric Cooperative (GCEC), you’ll see a summary of how much electricity you used during that billing cycle. You may notice spikes in daily use on especially cold days or when guests stay over. But you might be surprised to learn that, beyond your monthly energy consumption, external factors can also affect the cost of electricity.

Fuel Prices

GCEC buys electricity from our generation partner, PowerSouth Energy Cooperative, at a wholesale cost and delivers that power to our communities.

Generating and transmitting electricity accounts for a major portion of the cost to provide service, and the price of fuels used to generate power—such as natural gas and coal—rises and falls with supply and demand. While these shifts can influence electricity costs, we work closely with PowerSouth to plan ahead and stabilize prices for members.

Extreme Weather

Although we can’t control the weather, we review weather patterns and forecasts to prepare for times of extreme cold or heat, when demand for electricity is highest. But when temperatures plummet, demand spikes and prices may increase.

Infrastructure & Equipment

To cover the cost of delivering electricity to your home or business, GCEC members pay a monthly charge. This fee ensures the costs of equipment, materials, labor, and operations are covered across our service area. To deliver reliable service, we must maintain the local grid, including lines, substations, and other key infrastructure.

Energy Policy & Regulations

Federal energy policies and regulations can greatly influence electricity costs. As more power is generated from renewable sources and stricter regulations are placed on traditional fuels—such as natural gas and coal—costly upgrades and technologies must be constructed and deployed. These added expenses eventually reach consumers.

U.S. power consumption is expected to double by 2050. Across the country, electric cooperatives are working with members of Congress to advocate for responsible energy policies that reliably power our local communities. We are urging the Trump administration to repeal the Environmental Protection Agency’s power plant rule and bolster the nation’s grid reliability.

You Have Control

While many external factors are outside our control, we all have the power to manage energy use at home. Thermostat management is the most effective way to reduce consumption. Because heating and cooling account for the largest share of home energy use, setting your thermostat to the lowest comfortable temperature in winter can help you save. Remember to schedule regular service for your heating and cooling system and replace filters as needed.

Consider scheduling energy-intensive chores during off-peak periods—such as early mornings or evenings —when demand is lower. These small changes can add up to big savings.

Gulf Coast Electric Cooperative is your local energy partner. As always, we continue working diligently to provide you with reliable power at an affordable cost.