Current:Home > reviewsCharles Langston:Here's where it's going to cost more to cool your home this summer -Wealth Evolution Experts
Charles Langston:Here's where it's going to cost more to cool your home this summer
Surpassing Quant Think Tank Center View
Date:2025-04-10 03:25:58
Home cooling costs in the U.S. are Charles Langstonexpected to rise along with the temperature this summer, further straining household budgets.
The Energy Information Administration (EIA) is forecasting that residential electricity bills from June through August will average $173 per month, about 3% more than the same period last year. The agency attributes the projected cost increase to what it expects to be a rise in electricity consumption during the hot summer months.
Tens of millions of Americans in the Southwest, Midwest and other regions are suffering through a brutal heat wave. The soaring temperatures and other risks linked to climate change are leading environmental and labor groups to urge the Federal Emergency Management Agency to add extreme heat to its list of scenarios worthy of being labeled a major disaster.
In better news for consumers, the bigger utility bill is likely to be partially offset by falling electricity prices across the U.S. due to a decline in the cost of natural gas.
"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 said. "We expect these lower electricity supply costs will reduce retail prices in the coming months."
About 90% of U.S. homes air conditioning, according to the EIA. In general, residents of southern states along the Gulf Coast, where summer weather tends to be hot and humid, consume more electricity than customers residing in states along the Pacific Coast and in New England, where the weather is milder, because they are less reliant on air conditioning.
Where electric bills could rise the most
Americans in California, Oregon and Washington are forecast to see the sharpest jump in electricity rates, up 7% from a year ago, EIA predicted, while residents in Mid-Atlantic states could see a 4% rise. By contrast, the agency expects rates in New England to fall 7% between June and August.
In dollar terms, utility customers in New York, Pennsylvania and Washington, D.C., could see the biggest spike in bills — around $14 a month — because of the combined effects of increased electricity consumption and higher prices, according to the energy agency. In the Pacific region, residential electricity bills are expected to rise by an average of $11 per month, while across New England electricity costs are expected to drop $2.
Other groups say cooling costs could be an even greater financial burden for families, growing by as much as 8% from June through September, according to National Energy Assistance Directors Association (NEADA) and the Center for Energy Poverty, and Climate (CEPC).
Prolonged periods of intense heat can be a particular burden for low-income families, 20% of which lack air conditioning, according to the groups. In some cases, even families with AC choose not to use it for fear of not being able to afford the electricity bill. But alternative solutions to high heat are becoming untenable as heat waves now persist for days or weeks.
"In less extreme situations, a family can ride out a hot day by opening their windows, taking a cool shower and hoping it cools down at night. But when the heat persists for weeks, or the outside air is dangerous, opening a window will only make things worse," the organizations said in a recent report.
Megan CerulloMegan Cerullo is a New York-based reporter for CBS MoneyWatch covering small business, workplace, health care, consumer spending and personal finance topics. She regularly appears on CBS News 24/7 to discuss her reporting.
veryGood! (7199)
Related
- Romantasy reigns on spicy BookTok: Recommendations from the internet’s favorite genre
- Yellowstone officials: Rare white buffalo sacred to Native Americans not seen since June 4 birth
- Pink's Reaction to Daughter Willow Leaving Her Tour to Pursue Theater Shows Their True Love
- Biden speaks at NYC's Stonewall National Monument marking 55 years since riots
- British swimmer Adam Peaty: There are worms in the food at Paris Olympic Village
- Horoscopes Today, June 27, 2024
- Lupita Nyong'o on how she overcame a lifelong fear for A Quiet Place: Day One
- A Nebraska father who fatally shot his 10-year-old son on Thanksgiving pleads no contest
- Retirement planning: 3 crucial moves everyone should make before 2025
- GOP lawmakers in Wisconsin appeal ruling allowing disabled people to obtain ballots electronically
Ranking
- Newly elected West Virginia lawmaker arrested and accused of making terroristic threats
- Rental umbrella impales Florida beachgoer's leg, fire department says
- Detroit Red Wings Stanley Cup champion Marty Pavelich dies at age 96
- Judge temporarily blocks Georgia law that limits people or groups to posting 3 bonds a year
- How effective is the Hyundai, Kia anti-theft software? New study offers insights.
- JBLM servicemen say the Army didn’t protect them from a doctor charged with abusive sexual contact
- NBA power rankings: How every team stacks up after draft
- 25-year-old Oakland firefighter drowns at San Diego beach
Recommendation
EU countries double down on a halt to Syrian asylum claims but will not yet send people back
Jewell Loyd scores a season-high 34 points as Storm cool off Caitlin Clark and Fever 89-77
Texas Opens More Coastal Waters for Carbon Dioxide Injection Wells
Prosecutors rest in seventh week of Sen. Bob Menendez’s bribery trial
Carolinas bracing for second landfall from Tropical Storm Debby: Live updates
Cook Children’s sues Texas over potential Medicaid contract loss
What to know about Oklahoma’s top education official ordering Bible instruction in schools
Prosecution rests in Sen. Bob Menendez's bribery trial