Summer electric bills expected to rise 8.5% as heat and power costs climb

7 reported

A new report from the National Energy Assistance Directors Association projects that average summer electricity bills will be 8.5% higher this year than last, with some Southern states seeing even larger increases. The cost of a kilowatt-hour has risen more than 6% in the last year and 39% in the last five years, outpacing overall inflation. Extra-hot weather from El Niño is expected to keep fans and air conditioners running longer, increasing the number of kilowatt-hours customers need to buy. Federal funding for the Low Income Home Energy Assistance Program (LIHEAP) has remained flat for three years, even as electricity costs have climbed. Energy assistance offices report hearing from middle-income families struggling to pay power bills, alongside low-income households. Some customers, like a Texas teacher and an Arkansas seminary student, describe cutting grocery spending or donating plasma to cover higher electricity costs. Utilities in Texas are investing in grid upgrades to handle extreme weather and data center demand, which contributes to higher costs.

What’s reported

NEADA projects summer electricity bills will be 8.5% higher than last year on average.
The cost of a kilowatt-hour has risen more than 6% in the last year and 39% in the last five years.
Extra-hot weather from El Niño is expected to increase electricity usage.
Federal LIHEAP funding has been flat for three years.
About 13 million U.S. customers fall behind on bills enough to have power cut off each year.
Some states limit power shut-offs on the hottest days, but most do not.
Texas utilities are investing in grid upgrades, contributing to higher costs.

Key figures

Mark Wolfe, head of the National Energy Assistance Directors Association (NEADA)
Robin Westphal, third-grade math teacher in Texas
Matthew Kolb, seminary student and Army Reserve member in Arkansas
Delia Anderson, director of the Economic Opportunity Agency in Arkansas

Sources: NPR

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