Electric cooperatives across the country, including Edgecombe-Martin County EMC, are navigating a challenging landscape. Rising demand, supply chain disruptions, raw material shortages, increased labor costs, and tariffs have all contributed to higher operating expenses. Across our region and nationwide, many electric cooperatives and utilities are experiencing rising wholesale power costs, driven by increased energy demand, and investments in infrastructure to support system growth and ensure reliability. As a not-for-profit, member-owned cooperative, Edgecombe-Martin County EMC works every day to manage costs while continuing to provide the safe, reliable service that members expect.
Power supply costs are our largest expense, and they are directly impacted by how much electricity is needed and when it is used, largely dictated by weather and member consumption patterns. Extreme temperatures increase heating and cooling needs, while wet or dry conditions affect the use of sump pumps, humidifiers, dehumidifiers, irrigation systems, and crop dryers. Electricity remains one of the best values in daily life. Grocery prices, fuel, and household goods have all seen notable increases in recent years, yet for less than $6.50 per day, the average residential member can power heating and cooling systems, refrigeration, lighting, and the technology that keeps homes and businesses running smoothly.
The costs of equipment and materials needed to maintain and expand our system have also skyrocketed. A new bucket truck that cost around $300,000 three years ago now costs around $450,000. Similarly, a substation transformer purchased five years ago for $435,520 now costs $1.3 million and comes with a 30-month delivery timeline. These increases make it more expensive to maintain and upgrade the infrastructure that ensures power is reliable.
Electricity prices are affected by several factors, one of which is higher demand for power at peak times. As more homes and businesses rely on electricity for heating, cooling, and running devices, overall energy use continues to grow. During peak times—like hot summer afternoons or cold winter mornings—utilities must generate or purchase additional power to meet these higher demands for energy, often at higher costs. Fuel prices play a significant role. When fuel prices rise, power suppliers pass these additional costs along to utilities they supply.
Maintaining and upgrading infrastructure adds to the challenge. Replacing aging equipment, building new lines, and upgrading substations are essential to ensure reliability and efficiency, but these investments carry significant costs that are reflected in rates. Regulatory and environmental considerations also influence electricity costs. Environmental regulations designed to reduce carbon emissions have increased the cost of generating electricity. While integrating renewable energy generation benefits the environment, implementing renewable technologies and updating the utility grid to accommodate these new generating sources can result in higher upfront costs that affect rates.
Members play a key role in helping manage electricity costs, especially during peak demand periods. Simple actions such as adjusting thermostats a few degrees, running major appliances like dishwashers and dryers during off-peak hours, turning off lights and electronics when not in use, and using energy-efficient equipment can help reduce overall demand. By spreading out electricity usage and avoiding peak times, members help keep wholesale power costs lower, benefiting everyone in the cooperative. At Edgecombe-Martin County EMC, we remain committed to balancing these challenges with our mission to provide safe, reliable, and affordable electricity. By understanding the factors behind rate changes, members can better appreciate the value of their service and the investments required to keep power flowing efficiently and safely.
Cooperatively,
Winston Howell