The Relationship Between Weather and Utility Rates 

Weather and Utility Rates

The relationship between weather and utilities is multifaceted. Changes in precipitation, temperature, sea level and the severity and frequency of extreme events will affect how much energy is consumed, delivered and produced in the United States.

Generally, the greater the difference between the thermostat setting inside and the temperature outside, the more energy your heating system will use and the harder it will work. This is especially true for homes with aluminum-framed windows or single-paned windows that lack insulation. Homes with a significant amount of air leaks around doors, windows and electrical and plumbing boxes will see the effects as well.

 

Weather and Energy: How Does Weather Affect Your Utility Rates?

Several factors can affect your electricity bill, including:

  • Temperature fluctuations: Dipping or skyrocketing temperatures can make your cooling or heating equipment run at maximal capacity for more extended periods, thus using more electricity.
  • Extreme weather conditions: Uncharacteristically warm or cold temperatures can cause your bills to surge in just a matter of days. During bouts of severe weather, your system may struggle to maintain an ambient temperature. 
  • Humidity: Humidity levels significantly impact how air holds temperature. Excessive moisture may result in your thermostat staying at the same setting for longer periods, and water accumulation on the coils can cause your unit to run longer.
  • Periods of high demand: When it comes to air conditioning season across the USA, natural gas is the fuel of choice for meeting the peak electrical demand. More gas must be taken from storage in times of high need, which causes electricity rates to spike. Higher water and air temperatures can impact the efficiency with which power plants convert fuel into electricity.
  • Climactic anomalies: The polar vortex and other anomalies can cause utility rates to increase. Cold weather burdens nuclear power plants, coal, gas and other types of power generation and can cause some generators to undergo extended run times. 
  • Ancillary costs: Ancillary costs are sometimes sustained to ensure transmission and grid reliability. Suppliers may pass these costs onto customers on a future electricity bill.

 

What Can You Do to Prevent Increases in Cost? 

Utility rate predictions for 2021 are just that — predictions. While it’s impossible to know how the climate will impact utility rates in the future, having the right tools on hand can help your company prepare for what lies ahead.

Our electric schedule database, RateAcuity™, is an excellent way to expand your use of data, allowing you to:

  • Translate kilowatts (kW) and kilowatt-hours (kWh) into dollars: RateAcuity will enable you to identify the real-world effects of electricity rates and usage by turning your research into easily understandable, custom reports.
  • Compare rate options: RateAcuity allows you to compare different rates fast from a range of providers.
  • Analyze patterns and trends: You can use RateAcuity to access past and present data and conduct various types of analyses.
  • Search for historical utility rate data: Use historical information for analysis forecasting.  
  • Search regularly updated rates from utilities nationwide: With RateAcuity’s electric schedule database, you can expect accurate data for current electricity rates.

 

Contact RateAcuity Today to Get Accurate Reporting for Electricity Consumption

RateAcuity provides utility companies with an energy rate database to help them enjoy an electric and utility rate dataset on demand. 

With delivery options encompassing an application programming interface (API) and a user-friendly web portal, our robust utility rate database will allow you to integrate data into your software, forecast electric utility returns and access custom electric rate data reports.

To learn more about how the RateAcuity utility rate database can help you improve your data analysis processes, reach out to a representative online today. 

 

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