High temperatures forecast throughout the U.S. summer may damage American budgets by raising the price to keep homes cool.
House electricity bills are expected to rise on average in the summer by $784, up more than 6% from $737 in 2024, marking a 12-year record, according to a new analysis by the National Association of Directors of Energy Assistance (NEADA).
More and more costs follow the cold winter, which has prompted heating costs for many Americans and as consumers continue to struggle to cope Daily commodity prices rise. Consumers are also increasingly expressing their opinions about how tariff Gallup poll found that it could affect their daily expenses.
"We found that the summer of air conditioners will be another expensive summer, and electricity prices are rising faster than inflation," Neada energy economist Mark Wolfe told CBS MoneyWatch.
Neada said that from June to September, the surge in residential electricity costs is expected to be due to a combination of rising electricity costs, i.e., the increase in electricity costs, which outweighs inflation and is higher. These trends mean that not only are households hoping to pay higher prices for electricity, but more likely than last summer due to the need for more cooling.
“It’s not just the temperature rise, but the cost of cooling is rising,” Wolf said. “When electricity prices rise, they tend to stay high. So even if the temperature is moderate, your bills can go up due to the cost of electricity.”
Energy costs account for a larger share of the budget of low-income households compared to high salaries. Neada said low-income households earn about 8.6% of energy costs, while households with higher income ladder earn 3%.
Wolf notes that it is worrying that the lowest income earners may find it difficult to afford to have their homes cooler. A recent census family pulse survey found that between April 2023 and April 2024, 37% of low-income and middle-income households could not afford their energy costs for at least one month.
Wolff notes that if these families find themselves in a financial tightening this summer, they may choose to turn off the air conditioner, which could pose serious health risks.
"Last winter was cold, so they just went beyond paid bills and are now facing higher summer cooling charges," Wolf explained. "Although people know that if you don't use heat in the winter, your pipes will freeze, but that won't happen in the summer."
Reluctance to turn on the air conditioner can have adverse health effects, such as stroke. "While this will not cause damage to your building, it will cause damage to you," Wolf said.
Wolf said the public aid program is not in sync with the evolving climate. “Our heat waves lasted longer and the systems that protected the home didn’t keep up,” he said.
Cooling cost forecasts this summer should serve as a sign of the need for modernization of state and federal aid programs, Wolf said. Only 26 states provide summer cooling assistance to help Americans pay their bills. 33 states do not have proper protections to prevent utilities from shutting down customers using electricity when payments are lagging behind.
Extreme heat is the leading weather-related killer in the United States, according to the National Weather Service.
Taking steps to modernize homes can actually help families save money, Wolff said. For example, adding insulation to a home can help control energy bills.
“Families should start preparing for long-term extreme weather and consider the energy efficiency of their cooling systems,” he said.