Over the last several years, CREC members have experienced an increase in the cost of electricity. Our rates have risen, as has nearly every expense in our daily lives, and continue to climb.
As we navigate the complexities of our modern energy landscape, it’s vital to understand the reasons behind rising electricity rates and how these increases are essential for maintaining reliability, which remains and will always be CREC’s top priority.
Increased demand
When you flip a light switch, you expect illumination — not uncertainty. Our reliance on electricity is growing. From powering data centers and electric vehicles to supporting housing growth, to just charging our phones, tablets, and computers, electricity demand is higher than ever. This increased demand puts pressure on our existing infrastructure and necessitates the expansion and upgrading of our power generation capabilities. In fact, at CREC, we are in the middle of an infrastructure improvement plan which you may remember reading about in an earlier issue of Current Times/Rural Missouri.
Rising wholesale power costs
Wholesale power, the lifeblood of CREC’s operation, accounts for about 70% of our costs, and that expense continues to rise. Compliance with regulations is essential for the safe and reliable operation of our system. Part of the increase in rates helps cover the increasing costs associated with meeting these regulatory requirements, ensuring that our operations are safe and environmentally responsible. To meet the growing electricity demand, our generation and transmission (G&T) partners are investing in new power plants. These projects, scheduled to be up and running by 2026, are significant undertakings, costing over $1 billion, but are essential to ensure that we can continue to provide reliable power to our members.
Maintaining a balanced energy mix
The power mix provided by our G&T includes both coal and renewable energy sources. Coal-fired power plants provide steady baseload power, while renewable sources like hydro and wind contribute to a cleaner energy future. Although
renewable energy is a cleaner, greener option for generating power, it’s important to remember that it is not always predictable. Balancing these sources is crucial for maintaining a stable and reliable power supply. Investments in both types of generation help us manage the variability of renewable energy and ensure that we can meet demand at all times.
CREC’s commitment to cost efficiency
Despite these necessary increases, the cost of electricity in Missouri remains among the lowest in the country. CREC is committed to being one of the lowest-cost providers of electricity in our state while ensuring that we can continue to deliver reliable service. To help our members manage their electric bills, we encourage energy-efficient practices. Simple actions like using LED bulbs and sealing windows can make a considerable difference. Additionally, monitoring your energy usage helps you identify opportunities to save money, reduce waste, and contribute to a more sustainable
future. For example, consider using a programmable thermostat to optimize heating and cooling in your home.
Look for energy-efficiency tips throughout the year in Current Times, on our website, in our monthly e-newsletter,or call us, at 800-392-3709.