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Pee Dee Electric

Understanding Your Electric Bill

August is typically one of the hottest months of the year, and many families see their electric bills rise as air conditioners work harder to keep homes comfortable. When temperatures climb into the 90s and above, it’s natural to ask what drives those changes.

Jordan K. Hildreth, CEO and Executive Vice President

At Pee Dee Electric, we believe understanding your electric bill helps members make informed decisions about energy use. While your bill shows a single total amount, it reflects several underlying costs required to deliver safe and reliable electricity to your home or business.

The most direct factor is your energy usage. Electricity is measured in kilowatt-hours (kWh), and as usage increases, so does your bill. In the summer, air conditioning is typically the largest driver of higher energy consumption, as cooling systems run longer and more frequently during extreme heat.

Beyond usage, a significant portion of your bill reflects the cost of wholesale power supply. Pee Dee Electric purchases electricity from North Carolina Electric Membership Corporation. These costs fluctuate based on fuel prices, such as natural gas, coal and other energy resources used to generate power, as well as overall market conditions that affect generation resources.

Transmission costs are another important component. After electricity is generated, it travels across high-voltage transmission lines that move power from generating sources to local distribution systems. The facilities require ongoing investment and maintenance to ensure reliability and meet growing demand.

Once electricity reaches our system, Pee Dee Electric is responsible for delivering it safely to your home or business. This includes maintaining poles, transformers, substations and other essential equipment. These fixed costs are recovered through the monthly grid access charge, which helps ensure that the local system is ready to serve every member at any time, regardless of how much energy is used.

During periods of extreme heat, demand across the region also increases. When many utilities draw more power simultaneously, wholesale electricity prices can rise, further influencing overall costs.
There are also simple ways members can manage their energy use during peak summer months. Raising the thermostat a few degrees when away, replacing HVAC filters regularly, using ceiling fans, sealing air leaks and delaying use of major appliances during peak afternoon hours can all help reduce energy use and monthly bills.

Pee Dee Electric’s mission is to provide safe, reliable and affordable electricity while being transparent about the factors that influence energy costs. We remain committed to making thoughtful investments that keep the system reliable and support the communities we serve.

If you have questions about your electric bill or want to learn more about programs that can help you manage energy use, please contact our office. We’re here to help you make informed decisions that work for your household.

Thank you for allowing Pee Dee Electric to serve you.

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