If your recent power bill is higher than usual, you’re not alone. This winter’s extreme cold is driving higher energy costs for power consumers across the state.
As a not-for-profit, member-owned electric cooperative, we want to help. At Palmetto Electric, we offer a range of programs and guidance to help you use less energy and lower your bills.
The first step is understanding your bill. So, what’s driving these higher-than-expected bills, and what can you do about it?
The main factors are:
- Extremely cold weather
- Your thermostat setting
- Wholesale fuel costs
- Home energy efficiency issues, such as air leaks or insufficient insulation
Extreme weather
This winter has been historically cold. Already in 2026, South Carolina has had 31 days where the temperature dropped below 35 degrees, almost twice as many as we saw by this time last year.
That’s important because your heating and air (HVAC) system is by far your home’s largest energy user, contributing to about half of your monthly power bill. Cold weather makes your HVAC unit work overtime – and use significantly more power – to keep you warm.
In especially cold weather – below 40 degrees or so – your HVAC system often struggles to keep up. The system then automatically calls upon heat strips (often known as auxiliary or emergency heat) to provide an extra boost.
The problem is that heat strips are like big space heaters. They are inefficient, drawing upon a lot of power to provide that extra warmth. Running them extensively, as many homes have this winter, can double or even triple your home’s heating costs.
Your thermostat setting
The outside weather is just one factor in the equation. Another is your thermostat setting.
Your HVAC unit will run as long as necessary to close the gap between the outdoor temperature and the temperature setting on your thermostat. The heat strips kick on when the gap gets too wide or when you raise the thermostat by several degrees at once.
The bigger the gap between the outside temperature and your thermostat setting, the more power your unit will use, and the higher your power bill will be.
This is why Palmetto Electric Cooperative and other electric utilities recommend setting your thermostat to 68 degrees, or the lowest comfortable setting, in the winter.
If you must raise your thermostat, we recommend doing so gradually – one or two degrees at a time – to reduce how often your heat strips run.
Wholesale fuel costs
What does the “fuel cost” portion of your bill mean? It’s referencing the fuel – primarily natural gas – that power plants use to generate the electricity we deliver to you.
When frigid temperatures hit our region, energy demand surges across the grid and power producers must buy more fuel to make more electricity.
The balance of supply and demand shifts, and fuel prices go up. That happened this winter. Natural gas fuel alone more than tripled in price during extended periods in December and January.
That’s why you see a greater fuel cost adjustment on your recent bills.
Home energy efficiency issues
Your home’s energy efficiency also plays a part. Poorly insulated homes with air leaks don’t retain heat well. That means heating systems must run more, which drives up your bill.
We recommend sealing leaks, ensuring your home has adequate insulation and changing air filters to improve your home’s energy efficiency. You should also regularly service your HVAC unit, as poorly maintained heating systems can drive up power costs. More energy efficiency tips can be found HERE.
We’re here for you.
At Palmetto Electric Cooperative, we are here for you. We have programs that can help you manage payments and monitor energy use. We also have members of our team available to answer questions about your bill and help address energy efficiency issues. Please contact us if you have questions or need assistance by calling 843-208-5551.