If you are looking for ways to lower APS electric bill, it is essential to understand some of the top factors affecting the prices of electricity. Although we pay our electricity bills every month, we are rarely aware of what determines the prices of our electricity. Most people know prices are different in every region in the US but knowing the factors that determine the rates is very important.
The prices of electricity are dynamic and this means that they can change depending on demand and other things. Here are a few things that can impact the prices of your energy bills.
Availability and power-generating capacity
This comes down to demand and supply. In regions where there are a lot of energy companies, prices are usually lower than usual because there is a higher supply of electricity. This is very true when the demand is high during peak hours and in winter.
How power is delivered
Energy companies generate energy and deliver it to use as soon as possible. This process is very expensive. Gas pipeline capacity plays an important role in the distribution of energy. A lot of coal companies shut down in the last decade and natural gas came to fill the vacuum. This has prompted a lot of companies to invest in the construction of more efficient infrastructure to provide better services. The costs add up and it is always the customer who pays for them.
Weather patterns
When looking at how to lower your electric bill, it is important to consider weather patterns. In some areas, the weather is an essential determinant when it comes to electricity prices. In the winter and summer, prices spike because of the high demand. Studies show that when the weather is extreme, prices go high up to twenty times the average charge rate.
Drivers of energy demand
Electricity prices vary depending on price drivers and income drivers. Income drivers are gross domestic product, demographics and the way the population is growing economically. In areas with richer people, power rates are higher than in areas with poor people. This is more common in capitalist countries where electricity isn’t subsidized.
When it comes to price drivers, how electricity is generated determines the APS electric bill. E.g., producing wind energy can be more expensive up front than generating power through traditional methods. This is mainly because wind power companies function with specialized equipment and have to pay operators.
