Electricity prices and summer heat raise cooling costs for U.S. households

Electricity prices have climbed faster than general inflation, and forecasters expect above-average summer temperatures across much of the country. Mark Wolfe, who heads the National Energy Assistance Directors Association, said climate scientists anticipate this summer could rank among the hottest on record.

He added that households will therefore consume more of a product whose price has increased. NEADA projects an average 8.5 percent rise in summer electricity bills compared with last year, with larger increases expected in some Southern states.

Household responses Robin Westphal, who lives between Houston and Galveston, Texas, reported air-conditioning bills above $300 a month last summer. She said her family plans to reduce spending on groceries and dining out to offset higher power costs.

Matthew Kolb, a seminary student and Army Reserve member in northwest Arkansas, said he donates plasma twice weekly to help cover electricity bills that average $250 a month. He noted that higher summer utility charges complicate budgeting for a household with two children under age two.

Program funding and service reliability The federal program that assists low-income households with utility payments has received flat funding for three years while electricity prices have risen. Energy-assistance offices report more inquiries from middle-income families.

Delia Anderson, who directs a nonprofit serving ten Arkansas counties, said rising gasoline and grocery prices compound the effect of higher electricity costs. Utilities in Texas are investing in grid upgrades to handle extreme weather and increased demand from data centers.

Those investments contribute to higher rates, and some customers have purchased generators after past outages during peak heat.