Home cooling costs in the U.S. are expected to rise alongside temperatures this summer, adding to the financial burden on many households. The Energy Information Administration (EIA) forecasts that residential electricity bills from June through August will average $173 per month, an increase of about 3% compared to the same period last year. This rise is attributed to an expected increase in electricity consumption during the hotter months.

Projected Increase in Electricity Bills

As tens of millions of Americans endure a severe heat wave across the Southwest, Midwest, and other regions, the higher temperatures are driving up electricity usage. This increase in consumption is leading to higher utility bills. Environmental and labor groups are urging the Federal Emergency Management Agency (FEMA) to recognize extreme heat as a major disaster due to the associated risks and the strain it places on resources.

However, there is some good news for consumers. The expected rise in electricity bills may be partially offset by falling electricity prices nationwide, thanks to a decrease in natural gas costs. “Average U.S. wholesale power prices, which are an indicator of generation costs, were relatively high in 2021 and 2022, but they declined 30% to 50% in 2023, largely because of falling natural gas prices,” the EIA noted. “We expect these lower electricity supply costs will reduce retail prices in the coming months.”

Regional Variations and Impact

Approximately 90% of U.S. homes have air conditioning, according to the EIA. Residents in southern states along the Gulf Coast, where summers are typically hot and humid, consume more electricity than those in milder climates like the Pacific Coast and New England, as they rely more heavily on air conditioning. The EIA predicts that residents in California, Oregon, and Washington will experience the sharpest increase in electricity rates, with a 7% rise from the previous year. Mid-Atlantic states could see a 4% increase, while New England is expected to see a 7% decrease in rates between June and August.

In dollar terms, utility customers in New York, Pennsylvania, and Washington, D.C., could face the highest spikes in bills, around $14 more per month due to increased consumption and higher prices. In the Pacific region, residential electricity bills are expected to rise by an average of $11 per month, while New England might see a $2 decrease. This poses a significant financial burden, especially for low-income families.

Challenges for Low-Income Families

Prolonged periods of intense heat can be particularly burdensome for low-income families, 20% of whom lack air conditioning, according to NEADA and CEPC. Even families with AC units may choose not to use them due to the fear of unaffordable electricity bills. As heat waves now often last for days or weeks, traditional coping mechanisms such as opening windows or taking cool showers become less effective and even dangerous.

The ongoing challenges highlight the need for sustainable solutions and support for vulnerable populations as climate change continues to exacerbate extreme weather conditions. The increase in cooling costs underscores the importance of addressing both energy affordability and the impacts of rising temperatures on public health and safety.