Utility companies requested and received approval for more than $34 billion in rate increases during the first three quarters of 2025. This is nearly double the $16 billion approved during the same period in 2024, according to PowerLines.
More than 124 million customers are affected, and the U.S. Energy Information Administration reports residential electricity prices were up 11% in August from January.
In New Jersey, Suzann Hernandez and Camilo Aguirre insulated windows and held their thermostat at 76 degrees through the hottest days of summer, yet a 17% rate hike that took effect June 1 wiped out most of their progress.
“We thought [we’d] see at least a $50 decrease,” Hernandez told CBS News. “When we compared it to what we got this year, we only saw a $20 decrease.”
“It feels like there’s nothing we can do about it,” said Karin Gudal, an AES Ohio customer quoted in the PowerLines report.
The rate hikes are here and happening. That much is true. So what steps can you take to limit the financial damage to your budget?
1. Use these quick wins
Simple changes can deliver modest but reliable savings. LED bulbs reduce lighting costs. Smart power strips cut the hidden energy draw from electronics that stay partially powered even when switched off. Lowering your water heater temperature trims usage with little effect on daily routines. These steps are easy and inexpensive, making them good first moves when rates jump.
2. Work your rate structure
Many utilities offer time-of-use pricing with lower rates during off-peak hours. Running laundry and dishwashers later in the evening can reduce their operating costs. Some utilities provide usage alerts to help you shift power-hungry tasks to cheaper time blocks. Budget billing provides predictable monthly charges by averaging your annual use. This last one does not save money overall, but it prevents seasonal spikes from hitting your budget all at once.
3. Tap hidden assistance programs
Many households qualify for help but never apply. The Low Income Home Energy Assistance Program supports eligible families with heating and cooling costs, and income limits vary by state. Utilities often offer their own programs, including senior discounts, medical baseline allowances for customers with health needs, or no-cost weatherization services that improve efficiency.
4. Use competition in deregulated states
In states with deregulated markets, customers can shop for electricity suppliers. The utility still delivers the power, but competitive suppliers may offer lower rates or fixed-price contracts that protect you from future increases. Compare offers carefully. Review cancellation fees, contract length, and whether prices remain fixed or float with market conditions.
5. Make investments with staying power
Long-term improvements provide the strongest protection against rising rates. Air sealing, insulation upgrades, and efficient windows reduce heating and cooling loss. Many utilities offer rebates or zero-interest financing for these upgrades. Heat pumps provide efficient heating and cooling, especially when replacing aging systems. Solar panels require a larger commitment but can significantly reduce long-term electricity costs, and federal tax credits help offset installation expenses.
A home equity loan is a great way to access fast cash for improvements. Take a minute right now and see how much you can get, how fast you can get it and how little you’ll pay.
The political heat is on for 2026
Energy costs are becoming a political flashpoint as voters grow more frustrated. In New Jersey, rising electricity prices played a major role in the November 2025 gubernatorial race, with candidates from both parties emphasizing plans to address high utility bills. Professor Dan Cassino of Fairleigh Dickinson University expects the debate to spread nationally.
“This is a harbinger of what’s gonna happen next year in the midterm elections,” he told CBS News. “This issue’s not going to go away. It’s not like the power bills are going to go down.”
Taking practical steps now can soften the impact of rate hikes already underway, especially as colder weather arrives and higher seasonal usage pushes bills even further.
If rising utility costs are squeezing your budget, it may be time to build some emergency savings as a buffer. Start by opening a better bank account. SoFi offers a combination checking-and-savings account, and if you set up direct deposit, you can earn up to 4.30% on your savings. (Can change without notice.) Get up to a $300 bonus if you direct-deposit $5,000 or more within the first 25 days or up to a $50 bonus if you direct-deposit $1,000 to $5,000. That’s money in your pocket.
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