As the scorching summer months approach, American families are bracing themselves for the inevitable surge in their utility bills. According to a recent analysis by the National Energy Assistance Directors Association and the Center for Energy Poverty and Climate, the cost of keeping cool is projected to rise by nearly 8% this summer, averaging $719 from June through September. This uptick in expenses comes as yet another blow to consumers already grappling with the economic repercussions of inflation, having paid an average of just $527 for electricity during the summer of 2019.
Certain regions of the country are expected to be hit even harder by these rising costs. Residents in the mid-Atlantic and Pacific regions may see their bills spike by over 12%, while those in parts of the Midwest could face increases of around 10%. Mark Wolfe, the executive director of the National Energy Assistance Directors Association, attributes this to a combination of slightly declining electricity prices and anticipated higher usage driven by hotter temperatures predicted by the National Weather Service.
“This summer, the demand for electricity to combat the heat will be higher than ever,” Wolfe explained, underscoring the likelihood of above-normal temperatures across much of the nation.
While the US Energy Information Administration has offered a more conservative estimate, projecting an average residential electric bill of $519 for the summer months, up 2.9% from last year, the discrepancy arises from the association’s consideration of higher usage rates due to hotter weather and the inclusion of September in their forecast.
Implications of Escalating Utility Costs
The ramifications of soaring utility bills extend far beyond mere financial inconvenience. Heat-related fatalities have been on the rise, with over 2,300 deaths reported last year—a significant increase from just over 1,600 in 2021—according to the Department of Health and Human Services. Last summer, which marked the hottest on record in the US, witnessed unprecedented levels of heat-related health emergencies across various regions.
Despite these alarming trends, the US lacks a comprehensive policy to address the escalating challenges posed by climate change-induced heatwaves. Currently, approximately 80% of federal utility assistance funding is allocated to heating, leaving many vulnerable households struggling to cope. While some states and localities offer air conditioning support to low-income families, concerns over high operating costs often deter their usage, as highlighted by Diana Hernandez, associate professor at Columbia University.
In a recent focus group in Chicago, Hernandez encountered a mother resorting to public transportation with her children on scorching summer days due to the prohibitive cost of running her air conditioner. “There’s an urgent need to overhaul energy assistance programs to align with current climate realities,” Hernandez emphasized. “This is a pressing issue that demands immediate attention.”
Dwindling Assistance Amid Growing Demand
Compounding the situation, federal assistance for utility bills has been slashed by one-third for the current fiscal year. The reduction in funding for the Low Income Home Energy Assistance Program (LIHEAP) from $6.1 billion to $4.1 billion is expected to result in approximately 1 million fewer households receiving aid. Even for those fortunate enough to qualify, the assistance provided may not suffice to cover mounting arrears or adequately address cooling expenses.
Despite additional support allocated by Congress in recent years, prompted by soaring energy prices during the pandemic, it remains insufficient to meet the escalating needs of households nationwide. The association reports record highs in both the number of households in arrears on their utility bills and the total amount owed since the onset of the pandemic.
As of December, over 21.2 million US households—more than one in six—faced electricity bill arrears, with combined arrears for electricity and natural gas reaching $20.3 billion. Moreover, nearly one in five households reported maintaining unsafe or unhealthy indoor temperatures for at least one month in the past year, according to a survey by the US Census Bureau.
Inadequate Safeguards
While 17 states and the District of Columbia offer protections against power shutoffs during summer heatwaves, these measures are often outdated and insufficient. Despite the inherent risks, including heatstroke and other heat-related illnesses, many states impose shutoff moratoriums only during extreme heat conditions, failing to adequately protect vulnerable populations.
“Without a coherent policy addressing summer cooling, preventable deaths from heatstroke are inevitable this summer,” Wolfe cautioned. “We cannot afford to ignore this pressing issue any longer.”
As temperatures soar, utility bills skyrocket, and assistance dwindles, millions of American families are left navigating a precarious summer ahead. Urgent policy reforms and increased support are imperative to mitigate the risks and safeguard vulnerable communities from the lethal consequences of extreme heat.