Home electricity bills forecast to reach a 12-year high this summer
Home electricity bills are expected to rise to an average of $784 for the summer period, up more than 6% from $737 in 2024 and marking a 12-year record, according a new analysis from the National Energy Assistance Directors Association (NEADA).
The growing expense comes on the heels of a cold winter that drove up heating costs for many Americans, and as consumers continue to grapple with higher prices on everyday goods. Consumers are also increasingly expressing concerns about how tariffs could affect their day-to-day costs, Gallup polling has found.
"We found that it's going to be another expensive summer for air conditioning because temperatures will stay high, and electricity prices have been rising faster than inflation," energy economist Mark Wolfe, executive director of NEADA, told CBS MoneyWatch.
The anticipated spike in residential electricity costs from June through September is due to the combination of rising cost of electricity, which is outpacing inflation, with higher temperatures, NEADA said. Those trends mean that households are not only expected to pay higher prices for electricity, but will likely consume more of it than they did last summer because of the need for more cooling.
"It's not just temperatures that are going up, but the cost of cooling is going up," Wolfe said. "And when electricity prices go up, they tend to stay high. So even if temperatures moderate, your bill might go up because of the cost of electricity."
Unpaid bills
Energy costs eat up a larger share of low-income families' budgets compared to higher-earners. Low-income households spend roughly 8.6% of their incomes on energy costs, compared to 3% for those that are higher up the income ladder, according to NEADA.
Worryingly, the lowest earners could struggle to afford to keep their homes cool, Wolfe noted. The most recent Census Household Pulse Survey found that 37% of low- and moderate-income households could not afford their energy bills for at least one month between April 2023 and April 2024.
If those households find themselves in a financial crunch this summer, they may opt to turn off their air conditioning, which could pose serious health risks, noted Wolfe.
"Last winter was cold, so they're just getting over paying their heating bills, and are now facing higher summer cooling costs," Wolfe explained. "And while people understand that if you don't use heat in the winter, your pipes will freeze, that won't happen in the summer."
Reluctance to turn on one's air conditioning can have adverse health effects like heat stroke. "While this won't do damage to your building, it will do damage to you," Wolfe said.
Extreme heat and health
Public assistance programs haven't kept pace with the evolving climate, according to Wolfe. "We're having heat waves that are lasting longer, and the systems in place to protect families have not kept up," he said.
This summer's cooling cost forecast should be taken as a sign that state and federal assistance programs require modernization, according to Wolfe. Only 26 states offer summer cooling assistance to help Americans pay their bills. Thirty-three states have no protections in place to prevent utilities company from shutting off customers' access to electricity when they're behind on payments.
Extreme heat is the leading weather-related killer in the United States, according to the National Weather Service.
Wolfe says that taking steps to modernize your home can actually help households save money. For example, adding insulation to your house can help control energy bills.
"Families should start preparing for long-term extreme weather and think about the energy efficiency of their cooling systems," he said.
Texas mom accused of buying ammunition for son who officials say planned school attack
These Republicans voted against the reconciliation bill in House Budget Committee
GOP budget package fails to clear key House committee
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Upturn
6 hours ago
- Business Upturn
Atlanticus Holdings Corporation Announces Pricing of $400 million Senior Notes Offering
ATLANTA, Aug. 14, 2025 (GLOBE NEWSWIRE) — Atlanticus Holdings Corporation (NASDAQ: ATLC) ('Atlanticus,' the 'Company,' 'we' or 'our') today announced that it has successfully priced an offering of $400,000,000 aggregate principal amount of 9.750% Senior Notes due 2030 (the 'Notes') to be issued by the Company and guaranteed by certain of its domestic subsidiaries. The Notes are expected to be issued on August 20, 2025, subject to the satisfaction or waiver of customary closing conditions. The Company intends to use the net proceeds from the offering of the Notes (i) to repay amounts outstanding under its recourse warehouse facilities, (ii) for general corporate purposes, including to fund future acquisitions of portfolios and associated businesses and to fund the partial or full repayment of its 6.125% Senior Notes due 2026 on or prior to maturity and (iii) to pay fees and expenses in connection with the offering. The Notes and the related guarantees are being offered and sold to persons reasonably believed to be 'qualified institutional buyers' pursuant to Rule 144A under the Securities Act of 1933, as amended (the 'Securities Act') and to certain non-U.S. persons outside the United States in accordance with Regulation S under the Securities Act. The Notes and the related guarantees have not been registered for sale under the Securities Act or any state securities laws and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Securities Act and applicable state laws. This press release does not constitute an offer to sell, or the solicitation of an offer to buy, the Notes, the related guarantees or any other security, and shall not constitute an offer, solicitation or sale of any securities in any state or jurisdiction in which, or to any persons to whom, such offering, solicitation or sale would be unlawful. About Atlanticus Holdings Corporation (NASDAQ: ATLC) Empowering Better Financial Outcomes for Everyday Americans AtlanticusTM technology enables bank, retail, and healthcare partners to offer more inclusive financial services to everyday Americans through the use of proprietary analytics. We apply the experience gained and infrastructure built from servicing over 20 million customers and over $44 billion in consumer loans over more than 25 years of operating history to support lenders that originate a range of consumer loan products. These products include retail and healthcare private label credit and general purpose credit cards marketed through our omnichannel platform, including retail point-of-sale, healthcare point-of-care, direct mail solicitation, internet-based marketing, and partnerships with third parties. Additionally, through our Auto Finance subsidiary, Atlanticus serves the individual needs of automotive dealers and automotive non-prime financial organizations with multiple financing and service programs. Forward-Looking Statements This press release contains forward-looking statements that reflect the Company's current views with respect to the closing of the Notes and the use of proceeds therefrom. You generally can identify these statements by the use of words such as 'outlook,' 'potential,' 'continue,' 'may,' 'seek,' 'approximately,' 'predict,' 'believe,' 'expect,' 'plan,' 'intend,' 'estimate' or 'anticipate' and similar expressions or the negative versions of these words or comparable words, as well as future or conditional verbs such as 'will,' 'should,' 'would,' 'likely' and 'could.' These statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those included in the forward-looking statements. These risks and uncertainties include those risks described in the Company's filings with the Securities and Exchange Commission and include, but are not limited to, risks related to the Company's ability to satisfy the conditions to closing the Notes; the Company's ability to retain existing, and attract new, merchant partners and funding sources; changes in market interest rates; increases in loan delinquencies; its ability to operate successfully in a highly regulated industry; the outcome of litigation and regulatory matters; the effect of management changes; cyberattacks and security vulnerabilities in its products and services; and the Company's ability to compete successfully in highly competitive markets. The forward-looking statements speak only as of the date on which they are made, and, except to the extent required by federal securities laws, the Company disclaims any obligation to update any forward-looking statement to reflect events or circumstances after the date on which the statement is made or to reflect the occurrence of unanticipated events. In light of these risks and uncertainties, there is no assurance that the events or results suggested by the forward-looking statements will in fact occur, and you should not place undue reliance on these forward-looking statements. These forward-looking statements speak only as of the date of this press release or as of the date to which they refer, and the Company assumes no obligation to update any forward-looking statements as a result of new information or future events or developments, except as required by law. Contact:Investor Relations(770) 828-2000 [email protected]
Axios
6 hours ago
- Axios
Arkansas could see sharp jump in car insurance rates
Car insurance rates could rise more by the end of the year with tariffs than without them, and Arkansas could be one of the most affected states, a new projection finds. Why it matters: The analysis shows one more way that Americans pay for higher tariffs. Driving the news: The nationwide average annual cost of full-coverage car insurance could rise by 7% between June and December if tariffs stay in effect, compared to 4% otherwise, per a new report from insurance-comparison platform Insurify. In raw terms, the average cost could hit $2,472 with tariffs, compared to $2,402 without them. That's based on the tariff picture as of Aug. 1, reflecting the Trump administration's recently lowered rates on cars and auto parts from Japan, South Korea and Europe. Zoom in: Arkansas could see a 9% increase with tariffs or a 6.1% increase without by year's end. Several states with relatively large expected increases for the rest of the year recently saw costs dip, giving them more room for growth. Between the lines: Tariffs affect insurance rates by increasing the costs of imported parts needed for repairs. Inflation, accident frequency, and claims due to extreme weather also impact rates, among other factors. What they're saying: "Initially, car insurance companies looked at 2025 as a year to keep insurance rates stable, or even cut them," per Insurify's report. "Tariffs and inflation could derail that trend." Claims volume could also fall, and insurance regulators could fight price hikes. How it works: Insurify's projections are based on over 97 million rates from the insurance companies it works with, and reflect median costs for drivers age 20-70 with clean records and at least average credit.
Wall Street Journal
6 hours ago
- Wall Street Journal
Nobody's Buying Homes, Nobody's Switching Jobs—and America's Mobility Is Stalling
Americans are stuck in place. People are moving to new homes and new cities at around the lowest rate on record. Companies have fewer roles for entry-level workers trying to launch their lives. Workers who do have jobs are hanging on to them. Economists worry the phenomenon is putting some of the country's trademark dynamism at risk.
