What Caused the Increase? Higher Usage During Extreme Cold

December and January brought extended periods of freezing temperatures. In most all-electric homes, heating makes up about half of your winter power bills.

When temperatures drop:

• Heating systems run longer 
• Heat pumps work harder 
• Auxiliary (strip) heat may turn on 
• Electricity usage increases significantly 
• Electricity usage increases significantly

Do Heat Strips Really Use More Power?
Yes.
Auxiliary (strip) heat can use 2–3 times more electricity than normal heat pump operation.
Here’s how it works:
• If the room drops 1–2° below the thermostat setting, the heat pump runs longer to recover.
• If the temperature falls 2–3° below the set point — or the system runs 10–15 minutes without catching up — strip heat may energize.
• The “balance point” for most systems is around 35° outside.
• When outside temperatures fall to 25–30°, strip heat commonly engages.
Even if your thermostat is set to 68° or lower, the system may still struggle during extreme cold.
If strip heat is coming on during mild weather, it could indicate:
• Low refrigerant
• Dirty coils
• Airflow issues
This is one of the most common reasons we see winter usage spikes.

Other Winter Energy Spikes
While heating is the largest factor, several other things increase winter usage:
 

Water Heater 
Cold weather means:
• Incoming water is much colder
• It takes more energy to heat it to 120°
Electric water heaters can use 20–40% more energy in winter.
Long showers, laundry, dishwashing, and larger households increase this quickly.
 

Heat Pump Defrost Cycles
During freezing weather:
• Outdoor coils ice up
• The unit enters defrost mode
• Strip heat often runs during defrost
This temporarily increases power draw.
 

Space Heaters 
Portable heaters:
• Use about 1,500 watts per hour
• Use roughly 1.5 kWh per hour
• Can cost $0.20–$0.25 per hour each (depending on rate)
Two or three running regularly can rival auxiliary heat usage.

Well Pumps (If Applicable)
Cold weather may increase pump cycles due to higher water use and freeze protection.

Air Leaks & Longer HVAC Runtime
Even without strip heat:
• Heat pumps run longer
• Blowers run more
• Duct leaks waste heated air

What can I do to lower my usage?
There are simple steps you can take to further lower your usage and your bills.
•    During periods of intense cold, keeping your thermostat at the lowest comfortable setting can reduce the strain on your heating system and avoid the need for your heat strips to kick in.
•    Regularly servicing your HVAC unit and changing air filters will ensure it runs as efficiently as possible.
•    Sealing air leaks and installing proper insulation will help your home hold heat longer – further reducing the strain on your heating system.

Winter Energy Use Ranking (Typical All-Electric Home)
1.    Heat strips (if running)
2.    Heat pump
3.    Water heater
4.    Dryer / range / oven
5.    Space heaters
According to the U.S. Energy Information Administration (EIA), space heating accounts for approximately 42–45% of residential energy use nationally, and water heating is typically the second-largest use.

“My Usage Is the Same — Why Is My Bill Higher?”
Even if your kilowatt-hour (kWh) usage is similar to last year, your total bill can still be higher due to adjustments in the fuel costs 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.

How are power costs to AEC determined?
We purchase wholesale power from producers like Santee Cooper and Duke Energy.  
It fluctuates monthly based on fuel costs — primarily natural gas.
Fuel prices are set by regional and global markets — not by Aiken Electric.
When demand for electricity rises during extreme cold, fuel prices increase. This is basic supply and demand economics.
Wholesale power costs are outside of our control. 

“Did AEC Increase Rates Again?”
Our last base rate adjustment occurred in January 2025 after Santee Cooper lifted its rate freeze. Prior to that, base rates had not increased in nearly a decade.
Base rates have remained stable since January 2025.
Wholesale fuel costs fluctuate monthly, and those fluctuations are passed through without markup.

“Why Didn’t I Know About the Rate Increase?”
The January 2025 rate adjustment was communicated through:
• A series of South Carolina Living magazine articles
• Our website
If you ever have questions, we encourage you to reach out directly.

“Are We Paying for Hurricane Helene Repairs?”
No.
Storm restoration costs are handled through financial planning, reserves, insurance mechanisms, and federal assistance. Members are not receiving separate line-item charges for hurricane rebuilding.

“Are We Paying for Data Centers?”
No.
Data centers are not driving residential bills. Large commercial customers, including data centers, operate under separate rate structures. They pay 100% in advance to be connected to and served by our system.
Adding large, consistent energy loads can actually help stabilize demand, allowing wholesale power to be purchased more efficiently over time — which helps minimize the impact of future rate increases for all members.

“Is My Smart Meter the Problem?”
No. Smart meters do not increase your bill.
Smart meters:
• Do not increase usage
• Do not change rates
• Provide accurate readings
• Allow daily usage tracking
You can sign up for usage alerts on our website, or we can walk through your data with you

“Why Is My Neighbor’s Bill Lower Than Mine?”
Every home is different.
Bills vary based on:
• Home size
• Insulation
• HVAC efficiency
• Thermostat settings
• Number of occupants
• Appliance use
• Water heater demand
Even small differences can result in noticeable billing changes.

“What Are Peak Hours?”
Peak hours are times when overall electricity demand is highest — typically:
• 6–9 a.m. in winter
• 3–7 p.m. in summer
During peak demand, wholesale energy costs rise because additional generation must be brought online.

Residential base rates are not time-of-use based, but wholesale costs can increase during high-demand periods.

Programs like Beat the Peak help notify members during these times.  You can sign up here: https://energysmartsc.org/peakalert/

“Why Do I Get Charged a Franchise Fee?”
Franchise fees are not kept by Aiken Electric.
They are fees required by certain municipalities for the use of public rights-of-way and are passed directly to the local government.

“Why Do I Have a Meter Base Charge?”
The meter base charge helps cover the fixed costs of maintaining infrastructure:
•    Meters 
•    Poles
•    Lines
•    Transformers
•    Right-of-way maintenance
•    System reliability
These costs exist whether electricity is used or not.

What “Fuel Cost” Means
“Fuel cost” refers to fuel used to generate electricity at power plants — primarily natural gas and coal.  
It does not refer to gasoline or diesel for service vehicles.

“Why Aren’t Bills More Itemized?”
We balance transparency with cost efficiency.
Providing highly detailed multi-page bills for every member would increase printing, mailing, and administrative costs — which would increase overall expenses.
If you would like a detailed explanation, our Member Services team will review your bill line by line.

“Why didn’t AEC prepare members for this?”
We understand why some members feel caught off guard by higher winter bills.
Ahead of the extreme cold in December and January, Aiken Electric shared conservation reminders and energy-saving tips through multiple channels, including social media, South Carolina Living magazine, and member emails. We encouraged members to reduce usage during peak demand periods and provided tools to help manage energy consumption.
However, wholesale power costs are determined by regional and national energy markets. Because we do not control fuel prices, we cannot predict in advance exactly what those costs will be from month to month.
While we can prepare for weather events operationally and encourage conservation, market-driven fuel costs are outside of our control and fluctuate based on supply and demand.
Our commitment is to communicate as early and clearly as possible, provide resources to help manage usage, and remain transparent about how bills are calculated.

Our Employees Are Members Too
Our employees live in the communities we serve. They are members of this cooperative and are experiencing the same higher bills.
We are not separate from the membership — we are part of it.

Energy Efficiency Resources
Visit our Energy Efficiency Center:
https://www.aikenco-op.org/energy-efficiency-center
Programs include:
• Help My House
• H2O Select Plus 2
• Beat the Peak
• Smart Thermostat

Need Assistance?
If you are experiencing hardship, assistance may be available through agencies listed here:
https://www.aikenco-op.org/agency-information

Our Commitment
We are a not-for-profit, member-owned cooperative.
We:
• Do not have shareholders
• Do not profit from higher bills
• Return margins as capital credits
• Manage controllable costs responsibly
We are here to help.
If you would like to discuss your bill or have questions, the co-op is the most reliable place to find answers.
Our Member Services team is ready to assist Monday–Friday, 8 a.m.–5 p.m., by phone or at any of our office locations. We also offer email and chat options.