Summer Electricity Bills Expected to Hit 12-Year High As Heat and Inflation Surge

Americans preparing for summer’s heat may need to brace for another kind of shock: record-high electricity bills.

Home electricity costs are projected to climb to an average of $784 for the summer months, marking a more than 6% increase from $737 last year and reaching a 12-year high, according to a new analysis from the National Energy Assistance Directors Association (NEADA), as reported by CBS News.

This anticipated surge comes at a particularly challenging time for many households still recovering from elevated heating costs during the past winter, while continuing to navigate inflation’s impact on everyday expenses.

A perfect storm of rising costs

“We found that it’s going to be another expensive summer for air conditioning because temperatures will stay high, and electricity prices have been rising faster than inflation,” explains Mark Wolfe, executive director of NEADA and energy economist, to CBS News.

The projected spike in residential electricity costs from June through September stems from two key factors working in tandem: electricity prices outpacing broader inflation and forecasts of higher temperatures nationwide.

This combination means households will likely pay more per kilowatt-hour while simultaneously consuming more electricity to keep homes comfortable.

Wolfe noted to CBS News that when electricity prices go up, they tend to stay high. So even if temperatures moderate, peoples’ bills might still be higher because of the cost of electricity.

Low-income households facing difficult choices

The burden of rising energy costs falls disproportionately on lower-income Americans, who spend approximately 8.6% of their income on energy expenses compared to just 3% for higher earners, according to NEADA data.

This financial pressure is already forcing difficult choices. The most recent Census Household Pulse Survey found that 37% of low- and moderate-income households couldn’t afford their energy bills for at least one month between April 2023 and April 2024.

“Last winter was cold, so they’re just getting over paying their heating bills, and are now facing higher summer cooling costs,” Wolfe explains.

During the winter, people may keep the heat on despite the punitive expense to prevent frozen pipes. But during the summer, Wolfe points out, people don’t have a similar motivation.

However, going without air conditioning during extreme heat can lead to serious health consequences, including heat stroke. The National Weather Service identifies extreme heat as the leading weather-related killer in the United States.

Limited assistance available when it’s needed most

The alarming rise in electricity costs reveals critical gaps in support systems. CBS News reports that only 26 states currently offer summer cooling assistance to help residents pay their electricity bills.

Even more concerning, 33 states lack protections preventing utility companies from disconnecting service when customers fall behind on payments.

While heat waves are more intense and last longer, the systems to protect people from rising electricity bills have not kept up, Wolfe observes to CBS News.

This summer’s cooling cost forecast should serve as a wake-up call to modernize state and federal assistance programs.

Strategies to lower your summer electric bill

While broader policy changes are needed, you can take several practical steps to manage your electricity costs this summer:

• Improve home insulation to maintain cooler indoor temperatures
• Upgrade to energy-efficient cooling systems where possible
• Use ceiling fans to improve air circulation, allowing higher thermostat settings
• Close blinds and curtains during peak daylight hours to reduce solar heat gain
• Minimize use of heat-generating appliances during the hottest parts of the day
• Consider programmable thermostats that adjust cooling when you’re away from home

Wolfe advises that families start preparing now for extreme weather on an ongoing basis by planning to improve the energy efficiency of their cooling systems.

While such improvements require upfront investment, they can provide meaningful savings over time as electricity prices and temperatures continue their upward trend.

In summer, being proactive about energy management may help your household better weather both the heat and its impact on your finances.