Demand for power set to surge in the next 18 months. Here's what it could mean for your bill
According to a new report from the Energy Information Administration, the demand is largely fueled by data centers – some of which power online use of AI.
The EIA's Short-Term Energy Outlook, released Tuesday, forecasts an increase in U.S. annual electricity consumption in both 2025 and 2026, which will surpass the all-time high reached in 2024.
'We expect electricity sales to the commercial sector to rise by 3.0 percent in 2025 and 4.5 percent in 2026, driven largely by more demand from data centers,' the EIA forecast states.
Electricity sales to industrial consumers, meanwhile, will rise by 2.0 percent in 2025 and 3.5 percent in 2026.
The surges are likely to mean continuing increases in electricity bills across the country.
The EIA analysis predicted that retail electricity prices for households will increase by 4 percent in 2025 when compared to 2024.
However, the report also notes that this is not unusual, as prices have increased by about 5 percent on average each year since the pandemic.
According to previous reports by the EIA, U.S. consumers spent an average of about $1,760 on electricity expenditures in 2023, with an increase of around 13 percent possible by 2026.
At the time, the EIA noted that forecasts for retail electricity price increases differ across the country, with residential electricity prices in the Pacific, Middle Atlantic, and New England census divisions—regions where consumers already pay much more per kilowatt-hour for electricity— would likely increase more than the national average.
By comparison, residential electricity prices in areas with relatively low electricity prices may not increase as much, the administration said.
The figures are in contrast to previous energy use, which, according to the administration, was 'essentially flat for nearly two decades.'
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Reuters
39 minutes ago
- Reuters
Oil prices little changed as industry report points to slowing US demand
Aug 13 (Reuters) - Oil prices were little changed on Wednesday after falling in the previous session after an industry report showed U.S. crude stockpiles climbed last week illustrating the end of the seasonal summer demand period is nearing. Brent crude futures gained 3 cents to 66.15 a barrel at 0102 GMT after dropping 0.8% in the previous session. U.S. West Texas Intermediate crude futures fell 3 cents to $63.14 after declining 1.2%. Crude inventories in the U.S., the world's biggest oil consumer, rose by 1.52 million barrels last week, market sources said, citing American Petroleum Institute figures on Tuesday. Gasoline inventories dropped while distillate inventories gained slightly. Should the U.S. Energy Information Administration data set for release later on Wednesday also show a decline, it could indicate that consumption during the summer driving season has peaked and refiners are easing back their runs. The demand season typically runs from the Memorial Day holiday at the end of May to the Labor Day holiday in early September. Analysts polled by Reuters expect the EIA report to show crude inventories fell by about 300,000 barrels last week. Outlooks issued by OPEC and the EIA on Tuesday pointed to increased production this year which also weighed on prices. But both expect output in the U.S., the world's largest producer, to decline in 2026 while other regions will increase oil and natural gas production. U.S. crude production will hit a record 13.41 million barrels per day in 2025 due to increases in well productivity, though lower oil prices will prompt output to fall in 2026, the EIA forecast in a monthly report. The Organization of the Petroleum Exporting Countries' monthly report said global oil demand will rise by 1.38 million bpd in 2026, up 100,000 bpd from the previous forecast. Its 2025 projection was left unchanged. The White House on Tuesday tempered the expectations for a quick Russia-Ukraine ceasefire deal, which may lead investors to reconsider an end to the war soon and any easing on sanctions Russian supply, which had been supporting prices. U.S. President Donald Trump and Russian President Vladimir Putin are due to meet in Alaska on Friday to discuss ending the war. "Trump downplayed expectations of his meeting with President Putin ... However, expectations of additional sanctions on Russian crude continue to fall," ANZ senior commodity strategist Daniel Hynes wrote in a note.
The Guardian
an hour ago
- The Guardian
Real Madrid hit out at plan for Barcelona and Villarreal to play La Liga match in Miami
Real Madrid say they are opposed to plans by their bitter rivals Barcelona to play a league match in the US this season, saying the move 'sets an unacceptable precedent'. Barcelona and Villarreal are seeking permission from the football authorities to play in Miami in December. Fan groups of the clubs have already threatened legal action if the plan progresses, and now Real have expressed their opposition to the move. 'Real Madrid would like to express to its members, supporters and football fans in general its strongest rejection of the proposal to play outside Spain the match … between Villarreal and Barcelona,' the club said in a statement. 'The measure, promoted without prior information or consultation with the clubs participating in that competition, violates the essential principle of territorial reciprocity that governs two-round league competitions [one game at home and the other at the opposing team's], altering the competitive balance and granting an undue sporting advantage to the applicant clubs. 'The integrity of the competition requires that all matches be held under the same conditions for all teams. Unilaterally modifying this regime breaks the equality between contenders, compromises the legitimacy of the results and sets an unacceptable precedent that opens the door to exceptions based on interests other than strictly sporting, with a clear impact on sporting integrity and the risk of adulteration of the competition. 'If this proposal is carried out, its consequences would be so serious that they would mean a before and after for the world of football.' Real said they had asked Fifa not to authorise the staging of the game without the prior consent of all La Liga clubs, and had asked Uefa to urge the Spanish football federation (Rfef) to withdraw the request. Villarreal had earlier pledged that season ticket holders would be offered free travel and entry if the league game was moved to Miami. The club also said those who cannot go, or do not wish to go, would receive a 20% discount on the total cost of their season ticket. If Villarreal and Barcelona ultimately get the green light, La Liga will be the first of Europe's top five leagues to stage a match overseas. Sign up to Football Daily Kick off your evenings with the Guardian's take on the world of football after newsletter promotion The Villarreal president, Fernando Roig, told the club's official website: 'Reaching the United States is an opportunity we must seize. We have to expand the brand of our football and of Villarreal CF. Many clubs agree on the need to internationalise and to look for ways to generate more revenue so we can get closer to other leagues, such as the Premier League.' Rfef gave its approval to the plan on Monday. The matter has now been referred to European football's governing body Uefa to begin the procedures and obtain the necessary authorisation from Fifa, world football's governing body. The Premier League chief executive, Richard Masters, said last year his competition had no plans to move matches overseas but accepted Fifa moves to review the rules meant the 'door was ajar' for other leagues to do so.
Reuters
an hour ago
- Reuters
Dollar slips as investors eye September Fed cut
SINGAPORE, Aug 13 (Reuters) - The dollar weakened on Wednesday after a tame reading on U.S. inflation bolstered expectations of a Federal Reserve rate cut next month, with President Donald Trump's attempts to extend his grip over U.S. institutions also undermining the currency. U.S. consumer prices increased marginally in July, data showed on Tuesday, in line with forecasts and as the pass-through from Trump's sweeping tariffs to goods prices has so far been limited. Investors eyeing imminent Fed cuts cheered the data and moved to price in a 98% chance the central bank would ease rates next month, which in turn dragged on the dollar. Against the yen , the dollar was last 0.05% lower at 147.76, while the euro was steady at $1.1676, having risen 0.5% in the previous session. The dollar index last stood at 98.08, after falling roughly 0.5% on Tuesday. "The July CPI report showed less evidence of tariff pass-through to consumer prices...(but) I think a September rate cut is less than certain, probably not as certain as current market pricing," said Carol Kong, a currency strategist at Commonwealth Bank of Australia. "As the last payroll shows, one report can be sufficient to move the policy debate to one side or another. So I think we still have to wait until the remaining data to print before making a strong case about a rate cut or an on hold decision." U.S. Treasury yields similarly fell on the heightened rate cut expectations, with the two-year yield last at 3.7371%, having swung in a range of nearly 10 basis points on Tuesday. The benchmark 10-year yield was little changed at 4.2965%. Also eroding investor confidence in the dollar were fresh attempts by Trump to undermine Fed independence, after White House spokeswoman Karoline Leavitt said on Tuesday that the U.S. president was considering a lawsuit against Fed Chair Jerome Powell in relation to his management of renovations at the central bank's Washington headquarters. Trump has been at loggerheads with Powell and has repeatedly lambasted the Fed Chair for not easing rates sooner. The president also hit out at Goldman Sachs (GS.N), opens new tab CEO David Solomon, saying the bank had been wrong to predict U.S. tariffs would hurt the economy and questioned whether Solomon should lead the Wall Street institution. Elsewhere, sterling gained 0.03% to $1.3504. Britain's jobs market weakened again though wage growth stayed strong, according to data on Tuesday, underscoring why the Bank of England is so cautious about cutting interest rates. "(The) UK jobs figures pointed to the labour market remaining in fragile shape," said Michael Brown, senior research strategist at Pepperstone. "My base case still has the next 25bp cut pencilled in for November, though there is a long way to go, and a lot of data to come, before then." In other currencies, the Australian dollar dipped 0.05% to $0.6526, while the New Zealand dollar fell 0.03% to $0.5953. The Reserve Bank of Australia on Tuesday cut interest rates as expected, and signalled further policy easing might be needed to meet its inflation and employment goals as the economy lost some momentum.
