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After facing costly heating bills this winter, consumers shouldn’t expect relief for the summer months, according to new projections for household utility costs.
The National Energy Assistance Directors Association projects the average electricity cost to cool homes between June and September will reach $778 this summer. That’s a $61 — or 8.5% — increase from last year and nearly 37% higher than in 2020.
The association, which represents state employees administering federal energy assistance programs, attributes the increase to warmer temperatures and higher electric prices.
“Families are squeezed from both directions,” Mark Wolfe, the association’s executive director, said in a news release. “They are paying more for electricity, and they need more of it to stay safe during increasingly hot summers.”
Projections show a pronounced impact in the South because of its higher temperatures and widespread air conditioning usage. South Atlantic states — from Delaware to Florida — are expected to see average cooling bills rise by more than $100 between June and September compared with last year. But Midwestern states are expected to see summer costs go up by about $30 per household.
One in six American households are behind on energy bills, with total utility debt expected to reach approximately $23 billion by the end of the year, the association said. With home energy costs rising by more than double the rate of inflation, the group has urged Congress to appropriate billions more in energy assistance funding.
State lawmakers of both parties are increasingly scrutinizing high electricity prices as most Americans are served by state-regulated utilities. Despite growing outcry, state leaders say they have little ability to provide consumer relief because of broader energy market realities.
The Edison Electric Institute, which represents the nation’s investor-owned electric utilities, has pointed to surging electricity demand, extreme weather, new technologies and widespread electrification as factors leading to increased prices. The organization says its members will invest more than $1.1 trillion in grid improvements and expansion over the next five years.
“We’ve got to build a lot of infrastructure to meet this incredible growing demand that’s going to benefit our economy, benefit our communities, and help the United States lead in the technologies of the future,” EEI Vice Chair Chris Womack said during an April 14 event hosted by Axios.
A February study commissioned by the organization said electricity prices have remained stable across much of the country but hikes in “a few states and regions” have put upward pressure on national average costs.
That report attributed regional price hikes to changes in markets, policies and other circumstances beyond the control of utility providers.
“In general, the utilities have managed controllable costs effectively,” it said.
Stateline reporter Kevin Hardy can be reached at khardy@stateline.org.
This story was originally produced by Stateline, which is part of States Newsroom, a nonprofit news network which includes Virginia Mercury, and is supported by grants and a coalition of donors as a 501c(3) public charity.
