Summer electric bills sizzle as the cost of cooling climbs
NPR • • business
Key Points:
- Electricity bills in the U.S. are projected to rise by an average of 8.5% this summer due to soaring temperatures and increased energy usage for cooling, with some Southern states facing even higher increases.
- The cost of electricity per kilowatt-hour has increased over 6% in the past year and 39% over five years, outpacing overall inflation, while the demand for electricity is rising due to El Niño-driven hot weather.
- Low-income families receive federal assistance through the LIHEAP program, but funding has remained flat for three years despite rising electricity costs, leaving many middle-income households struggling to pay bills.
- Rising utility costs are forcing families to cut back on other expenses, with some resorting to measures like donating plasma or limiting grocery and leisure spending to manage higher air-conditioning bills.
- Utilities are investing in grid upgrades to handle extreme weather and increased demand, which contributes to higher costs, and power outages remain a concern during heatwaves, prompting some residents to purchase generators for backup.