Brace for a Summer of Heat Waves and Higher Air Conditioning Bills

Rising Costs of Staying Cool

An analysis by the National Energy Assistance Directors Association and the Center for Energy Poverty and Climate predicts that the cost of keeping cool will rise nearly 8% this summer, with average electricity bills expected to reach $719 from June through September. This marks a significant increase from the average of $527 during the summer of 2019. The spike will be even higher in some regions, with the mid-Atlantic and Pacific areas seeing increases of more than 12%, and parts of the Midwest experiencing jumps of about 10%.

Mark Wolfe, the association’s executive director, attributes the expected increase in bills to higher usage driven by the anticipated hotter temperatures. "You’ll need more electricity to get through the summer," he said.

Comparing Projections

The U.S. Energy Information Administration (EIA) offers a slightly different projection, estimating that the average residential electric bill for June, July, and August will be $519, up 2.9% from the same period last year. The EIA's lower estimate results from differences in projected usage rates and the exclusion of September in its summer forecast.

Serious Health Consequences

For some Americans, rising utility costs can lead to severe consequences, including heat-related deaths and health emergencies. The Department of Health and Human Services reported that over 2,300 people died from heat-related causes last year, up from 1,600 in 2021. The hottest summer on record in the U.S. saw record levels of heat-related health emergencies in certain parts of the country.

Despite the increasing frequency and intensity of heat waves due to climate change, the U.S. lacks a comprehensive policy to help people stay cool. About 80% of federal funding for utility assistance currently goes towards heating. Some states and localities do provide air conditioners to low-income households, but many people are afraid to use them due to the cost.

Diana Hernandez, co-director of the Energy Opportunity Lab at Columbia University, highlighted the dire situations faced by some, such as a mother in Chicago who rides public buses with her children during hot summer days because she cannot afford to run her air conditioner. "There’s a need to rethink and modernize energy assistance programs to reflect current climate realities," Hernandez said.

Reduced Assistance

Compounding the issue, federal assistance for utility bills has been cut by one-third this fiscal year. The Low Income Home Energy Assistance Program (LIHEAP) now has $4.1 billion available, down from $6.1 billion previously. This reduction will force states to cut the number of households they can help and may mean less financial relief for those who do receive assistance.

Even with additional support in recent years due to soaring energy prices during the Covid-19 pandemic, the demand for assistance has far outstripped supply. In December, 21.2 million U.S. households were behind on their electricity bills, up from 20.1 million a year earlier, with combined arrearages for electricity and natural gas reaching $20.3 billion.

Nearly one in five households reported keeping their homes at unsafe or unhealthy temperatures for at least one month in the past year, according to an April Household Pulse Survey by the U.S. Census Bureau.

Inadequate Protections

Only 17 states and the District of Columbia have protections against power shutoffs during summer heat waves, compared to more widespread moratoriums during cold winters. Even in states with summertime protections, the rules are often inadequate, only activating during very high temperatures or specific heat advisories.

"Because of the lack of a coherent policy to address summer cooling, people will die this summer from heatstroke," Wolfe warned. "We will have unnecessary deaths."