Summer officially starts later this month, and Americans can look forward to yet another expense clearing out their wallets.
A new report from the National Energy Assistance Directors Association (NEADA) and the Center for Energy Poverty, and Climate (CEPC) indicates energy bills will increase by about 8% from now until September.
As June kicked off, a “heat dome” blanketed the Southwest, bringing record-breaking temperatures and dangerous conditions. According to the Old Farmer’s Almanac, hotter-than-usual temperatures are expected through much of the country this summer.
Last year, the financial burden of keeping households cool during the summer was estimated at $661. With the increase noted in NEADA and CEPC’s report, that cost is now up to $791.
“Due to the unprecedented rise in summer temperatures and higher rates of extreme heat events over the last ten years, the cost of summer cooling has risen from $476 in 2014 to a predicted $719 in 2024,” based on National Oceanic and Atmospheric Association data, said the report press release.
Prices have been creeping higher for years amid record inflation and high interest rates set by the Federal Reserve Bank in an attempt to bring down that inflation. Last month, the Bureau of Labor Statistics reported that the energy index alone increased 2.6% for the 12 months ending April.
Beyond making Americans grumble at their electric bills, these high energy costs also put low income families in danger. Per the NEADA and CEPC report, funding for the federal Low Income Home Energy Assistance Program (LIHEAP) was cut from $6.1 billion in FY 23 to $4.1 billion for this year.
“States have reported that due to the reduction in federal funds, they will have no choice this year but to reduce the number of households served by about one million, and reduce average heating and cooling benefits,” NEADA said “About 80% of program funds will be used for heating, leaving only 20% available for home cooling despite predictions of another summer of unprecedented high temperatures.”
Additionally, more than half of the 50 states don’t have summer shit-off protections. These protections allow for utilities to remain on in dangerous conditions regardless of payment, but just 17 states and the District of Columbia provide these protections.
In the other 33 states, low-income households “have no summer shut-off protections and could face dangerous health conditions caused by prolonged exposure to extreme heat,” said NEADA. Already, about 20% of low-income families have no air conditioning.
If electricity is shut off altogether, it can be dangerous to be inside a home. Ways to deal with extreme heat include keeping windows open, taking cool showers and finding cooling shelters in their community.
However, the report said that “when the heat persists for weeks, or the outside air is dangerous, opening a window will only make things worse.”