January cold may impact March bills

Even though March weather feels milder, your energy bill may still reflect the bitter cold we experienced in early 2026. Those frigid days, along with snow, ice, and high winds, drove up heating use and contributed to higher energy costs across the region.

Heating and cooling: the biggest part of your bill

Heating and cooling costs typically account for up to two-thirds of a home’s energy expenses. The beginning of 2026 delivered sustained periods of extreme cold, high winds, snow, and ice, all of which significantly increased energy use.

Heating systems work around the clock during cold weather to maintain indoor comfort, even when no one is home.
Even if the thermostat is turned down to save energy, furnaces and heat pumps run more frequently in response to the extreme cold.
Energy use for colder temperatures is more pronounced when outdoor temperatures fall below 40°F, and for heat pumps, usage increases even more when temperatures drop below freezing.
Heat pumps rely on outside air to transfer heat; efficiency declines as it gets colder.

Temperature highlights

Winter Storm Fern brought snow and ice to Southern Maryland on January 25
Ice from the storm lingered as the average daily temperature hovered below freezing for close to two weeks
The average temperature for January ranged between 17°F and 50°F (not including the wind chill), with an average daily temperature of 33°F

Homes with poor insulation or drafty windows require even more energy to maintain warmth.
In extreme cold, many heat pumps switch to emergency heat, which can use two to three times more energy than normal.

The cost of reliability

January’s weather also contributed to higher-than-expected energy costs as high demand and transmission constraints stressed the electric grid. PJM Interconnection, the regional organization that coordinates electricity across 13 states and the District of Columbia, closely monitors and prepares for periods of grid stress.

On January 26, 2026, PJM issued alerts signaling that all available energy resources were needed to meet demand. Under these conditions, PJM took measures to keep the grid reliable, including requiring some gas generators to stay online and allowing dual-fuel units to switch to oil if gas wasn’t available. PJM’s generation requirements and higher fuel costs drove higher wholesale energy prices.

SMECO hedges power purchases to moderate

From Jan. 1 through Feb. 10:

The minimum temperature was below freezing for 36 out of 41 days
For 17 days, the temperature dropped into the teens and single digits
For 12 days, the high did not exceed freezing

market fluctuations, so while the cooperative’s wholesale energy costs are more than 120 percent higher than normal, they are not as high as the full market increase. The added cost for energy supply will appear on bills over several months beginning in March through the Power Cost Adjustment (PCA). The increase will be spread out to avoid a single large-bill impact. The PCA is part of the residential Standard Offer Service (SOS) energy charge on your bill, which covers the cost of the electricity supply used in that billing cycle. The cost of energy is a direct, pass-through cost; SMECO doesn’t mark it up in any way as “for-profit” energy suppliers do.

These events highlight a growing, region-wide energy shortfall and show how extreme weather and high demand can affect energy costs, emphasizing the importance of maintaining a reliable grid.

SMECO.coop/Straight-Talk

Studies suggest that energy use increases by 3 to 5% for every 1°F drop in outdoor temperature, particularly for heat pumps, furnaces, and other heating systems.