Summer electricity costs projected to rise 8.5% as heat wave strains budgets
A new report from the National Energy Assistance Directors Association (NEADA) projects that average summer electricity bills will be 8.5% higher than last year, with larger increases expected in some Southern states. The cost of a kilowatt-hour has risen more than 6% in the past year and 39% over the last five years, outpacing overall inflation. Federal funding for the Low Income Home Energy Assistance Program (LIHEAP) has remained flat for three years despite rising electricity prices. Energy assistance offices report hearing from middle-income families struggling to pay power bills, as higher costs for natural gas, grid upgrades, and data centers push prices up. Some families are cutting spending on groceries or donating plasma to cover bills. In Texas, where summer temperatures can exceed 100 degrees, utilities are investing in grid upgrades to handle extreme weather and data center demand, but those investments contribute to rising costs. Many states do not restrict power shut-offs on hot days, and an estimated 13 million customers annually have their power temporarily cut off due to unpaid bills.
What’s reported
NEADA projects average summer electricity bills will be 8.5% higher than last year.
The cost of a kilowatt-hour has risen more than 6% in the last year and 39% in the last five years.
Federal LIHEAP funding has been flat for three years.
13 million customers in the U.S. have their power cut off each year due to unpaid bills.
Some states limit power shut-offs on the hottest days, but most do not.
Prices are being pushed up by higher natural gas costs, grid rebuilding, and data center demand.
Key figures
Mark Wolfe, head of the National Energy Assistance Directors Association (NEADA)
Robin Westphal, third-grade math teacher living near Houston and Galveston, Texas
Matthew Kolb, seminary student in northwest Arkansas
Delia Anderson, director of the Economic Opportunity Agency in Arkansas
Sources: NPR
