Latest news with #PowerLines
Time Magazine
28-07-2025
- Business
- Time Magazine
Why Your Energy Bill Is So High
If it feels like your energy bills are higher than usual, it is not just a figment of your imagination. As a heat dome smothers huge parts of the United States, Americans are noticing their electricity prices skyrocket—driven up by increased demand and inflation, among other factors. More than 60% of Americans said in April that their electricity and/or gas bill had increased compared to a year ago, and nearly three-quarters are concerned that the bills will increase this year, according to a poll marketing and research specialist Ipsos conducted with PowerLines, a nonprofit working to reduce electricity prices. Just 3% said their bill had decreased. The increases appear to have only continued in the months since then, hitting Americans across the country—but especially in the Western U.S. PowerLines found in a new report that U.S. electric companies have asked for $29 billion in rate increases so far this year, more than double their requests for the first half of 2024. It notes that Western utilities are 'particularly' impacted, having asked for more than $4 billion in raised rates. 'Improvements to aging infrastructure are cited as a major driver of the increases in the region,' PowerLines says, pointing to upgrades made in response to the increase in extreme weather and climate emergencies over the past few years that it notes has 'burdened' the electric grid. Many businesses and energy industry leaders are now looking to find ways to make the U.S. power grid more sustainable for 21st century power usage. Demand for energy is also growing as the 2025 summer proves exceptionally hot, with high humidity intensifying the heat. A heat wave has been baking large swaths of the U.S. in the past week, prompting the National Weather Service (NWS) to issue major heat advisories across the country. Energy company Con Edison warned earlier this summer that it was working to meet increased demand for summer air conditioning and that prices would rise, and in June, the U.S. Department of Energy had to release an emergency order to allow Duke Energy to exceed the emissions limits laid out in its power plant permits in order 'to preserve the reliability of the bulk electric power system.' Extreme heat is only becoming more common as the climate changes. According to Climate Central, a nonprofit that works to research climate impact, the heat wave that hit much of the U.S. in late July was level five on the company's Climate Shift Index (CSI), meaning it found that 'human-caused climate change made this extreme heat at least five times more likely.' Inflation appears to be playing a role in increasing rates as well. An in-depth analysis on electricity expenses that the U.S. Energy Information Administration (EIA) also shared earlier this year, found that between 2013 and 2023, electricity prices closely mirrored inflation rates. The agency explained, however, that it expects 'increases in electricity prices to outpace inflation through 2026,' as demand continues to grow. The analysis explains that U.S. energy prices increased significantly between 2020 and 2022 as a result of the COVID-19 pandemic and Russia's invasion of Ukraine due to disrupted supply chains and market volatility, but while gasoline prices have bounced back to more reasonable levels, electricity prices have not, as temperatures rise, and power grids remain strained. As large companies work to meet increased demand, prices are mirroring the need. The Senate Energy and Natural Resources Committee held a hearing regarding concerns about rising energy demand on July 23, where New Mexico's Democratic Sen. Martin Heinrich argued that meeting the growth will require 'structural changes to how we permit and build our energy infrastructure,' including specifically clean energy projects. '[E]lectricity bills are becoming unaffordable for too many Americans,' Heinrich said, pointing to states like California and Texas where he says 'high levels of renewable energy do not compromise grid reliability—in fact, they improve it.'
CTV News
16-07-2025
- Climate
- CTV News
Aylmer neighbourhood loses power due to construction dump truck colliding with power lines
A dump truck that was part of a nearby construction project connected with a power line on Victoria St. South in Aylmer around 11 a.m. Wednesday morning. The incident pulled down multiple hydro poles and left power lines lying across the road, lawns and driveways. 071625 Dump truck collides with power lines in Aylmer. (Joel Merritt/CTV News London) Emergency crews were able to safely shut down power in the neighbourhood and no injuries occurred. Residents remain without power with officials estimating that it will return around approximately 8 p.m. The street remains closed between Pine Street East and Elk Street due to the downed lines.
Daily Mail
13-07-2025
- Business
- Daily Mail
Electricity companies plot massive 142% bill hike despite increasing risk of blackouts
Major electricity companies are plotting a 142 percent bill increase for individual consumers to pass on the cost of energy guzzling data centers. The booming demand for data centers is being driven by the relentless rise of AI in every area of life. Power providers have asked regulators to approve $29 billion in rate increases in the first half of the year. The figures mark a 142 percent rise on the hikes seen in the same period last year, according to a new report. It comes as President Donald Trump's Energy Secretary warned that the demand of data centers could inflict 800 hours of energy blackouts a year by 2030. 'This report affirms what we already know: The United States cannot afford to continue down the unstable and dangerous path of energy subtraction previous leaders pursued,' Secretary Chris Wright said in a statement. 'In the coming years, America's reindustrialization and the AI race will require a significantly larger supply of around-the-clock, reliable, and uninterrupted power,' he explained. Among those set to hike prices is National Grid, which serves customers in New York and Massachusetts. The company was given the green light by regulators to hike consumer's bills by $50 a month - a total windfall of $708 million. 'What we're seeing is a deer-in-headlights dynamic,' Charles Hua, executive director of PowerLines, an energy affordability advocacy group that compiled the report, told the Financial Times. 'A lot of states don't have a playbook for how they can meet rising [data center] demand while balancing affordability and utility bills.' PG&E, which serves 5.5 million billpayers across California, requested permission for a $3.1 billion bill hike in April. The request was followed swiftly by a $834 million proposal to regulators by Texas provider Oncor, which provides energy to 13 million households. Utility giants insist the bill increases will go towards repairing damaged infrastructure which is being battered by the effects of climate change. Investment is also needed to upgrade the ageing electricity grid to meet the demands of rapid growth. However, consumer advocates argue the electricity demands of AI and its data centers are being billed to ordinary Americans rather than corporations. While some utility companies are charging big energy users such as data centers large-load fees, it is not clear how evenly the costs are being distributed as most deals take place in private. 'These closed door proceedings are problematic as the regulator doesn't get the benefit of multiple parties weighing in and we don't know,' Ari Peskoe, director at Harvard Law School's electricity law initiative, told the FT. 'Meanwhile the utility is spending billions of dollars on infrastructure,' he added.
Bloomberg
10-07-2025
- Business
- Bloomberg
Electric Bills in US Set to Rise as Utility Requests for Rate Hikes Double
US electric companies have asked for $29 billion in rate increases so far this year, more than double their requests for the first half of 2024, according to a new report from energy affordability advocacy group PowerLines. The rise is driven by the costs of replacing aging infrastructure and powering data centers for AI.
Yahoo
09-06-2025
- Business
- Yahoo
U.S. electricity rates are rising, and utilities are making more money than ever
U.S. electricity costs are soaring. The average price of electricity hit 18 cents per kilowatt-hour in April 2025, up 35% from five years ago. It's significantly outpacing inflation. According to a recent PowerLines report, nearly 80 million Americans struggle to pay their utility bills, yet prices are expected to increase. In early 2025, U.S. gas and electric utilities either requested or were approved for rate hikes totaling roughly $20 billion. Utility companies say the price increases are necessary to upgrade our aging grid. Some also point to clean energy, specifically solar homeowners, as the reason electric bills are rising. But researchers have looked into the numbers and say they don't add up. 'Utility spending has been out of control for years and years and years,' said Brad Heavner, Executive Director of the California Solar and Storage Association (CALSSA). Stay informed on the latest industry news—delivered to your inbox each month. Sign up for EnergySage's newsletter. Your electric bill is divided into two sections: Supply and delivery. The supply part covers the cost of generating the electricity you use, while delivery is the cost of delivering the electricity to your home. Price fluctuations will always surround energy generation, whether it's coal, gas, or renewables. But when we asked Jigar Shah—an entrepreneur and podcaster who was formerly the Director of the Loans Program at the Department of Energy—he said it's not generation but the distribution part of our electric bills that has 'been going haywire.' 'Distribution used to be 20%, today, it's 50% of your bill,' said Jigar. Below is an example of an electric bill from a Massachusetts home. The electricity supply is about $220, which is still high, but the delivery charges are nearly $315, or 60% of the bill. So the question becomes, why are energy delivery costs rising? Jigar says our electricity demands are too great for the current grid infrastructure. 'People are buying all sorts of things that use electricity, whether hair dryers, electric vehicles, heat pumps, electric water heaters, or whatever it is. And every time you do that, the utility says, 'We need to be able to upgrade the distribution grid so that you can do whatever you want. You can turn everything on in your house simultaneously, and we have to be able to serve you.' That bargain is getting way too expensive,' said Jigar. He's right—Americans are using electricity like never before. This isn't necessarily bad because home electrification is excellent for our planet and health. The problem is that much of our power grid was built in the 1960s and 1970s, when people had one TV, no computers or internet, and only 12% of homes had air conditioning. Jesse Buchsbaum, energy economist and fellow at Resources of the Future (REF), said our electric bills are directly tied to utilities' investments to upgrade transmission and distribution infrastructure. (FYI—transmission lines are the high voltage wires that carry electricity from a power plant to your city or town.) 'In many places, the grid is aging, and so there are necessary upgrades that are needed, especially as climate risk and natural disaster risk are rising,' Jesse said. He also raises the valid argument of a changing climate. Over the last decade, we've seen record-hot summers and historic freezes, which only put a bigger strain on the grid. For example, in 2024, Hurricane Helene shut off power to more than two million North Carolinians. In 2021, the ice storm in Texas left millions of people powerless in freezing temperatures for days. To prevent these events from happening, utilities need to strengthen and expand our current power grid—and we're the ones paying for it. '[Rate increases] are needed to expand the grid, both in the generation sense, but also to build the poles and wires that will transport the power to those new sources of demand, " Jesse said. 'A lot of those costs end up being borne by both residential and commercial industrial rate payers.' While our electricity needs have increased and our grid needs upgrades, some experts argue that utilities are hiking our rates more than they need to. In a report published earlier this year, Brad and his team at CALSSA said the real reason rates are rising in California is 'out of control utility spending.' CALSSA hired an independent economist to investigate 20 years of utility rate case filings in the state. Brad said that when utilities claim they need more money to fix and expand the distribution grid, regulators are 'unable to say no' and approve rate hikes that may not be necessary. 'And the utilities get away with it—they're laughing year after year,' Brad said. 'Now, after two decades of effectively playing this game, their profits have soared and so have electric rates.' While the CALSSA report is specific to California, utility mismanagement of funds is a nationwide issue. RMI released a report in November 2024 highlighting how utilities have invested money into small transmission projects within their territories. The report says these small, local projects have very little oversight from state and federal regulators, earn the utilities guaranteed profits, and cost us ratepayers way more than if they were to invest in bigger, regional projects—ones that would require more overhead and planning. Report co-author Claire Wayner told Canary Media that transmission planning is like 'two cars being driven on two different roads in parallel. The regional road is like a toll road with all these checkpoints: identify regional needs, open competitive bidding windows, identify the costs and benefits…The local road has no speed limits. [Utilities] can build as much as they want.' Here's some proof in the pudding: A 2024 analysis by Grid Strategies found that transmission project spending hit an all-time high in 2023, but only 55 miles of new transmission lines were added that year, compared to a record 4,000 miles added in 2013. Yet, our electricity rates were about 20% less in 2013. 'We've authorized the utilities to spend a lot of money, and they haven't spent most of that money yet,' Brad said. 'It's really criminal—in some cases, we've paid them to make upgrades and fix transmission towers, and they haven't done it.' While millions of Americans are unable to pay their monthly bills, an analysis by the Energy and Policy Institute shows the country's largest publicly owned utilities pay their CEOs between $17 and $33 million a year. The CEOs earned a collective $647 million in 2023, a 9% increase from 2022. The 2025 analysis shows that the collective payout dropped to $530 million in 2024. However, it states that most of the 54 utilities examined increased their executive payouts year over year. Some utilities also claim that homes with solar panels are increasing your bills—a theory called 'the solar cost shift.' The idea is that if solar homeowners generate their own power, utilities make less money. But because solar homeowners still have to use the grid sometimes, the utility raises everyone else's rates to compensate. It sort of paints solar panel owners as freeloaders. Jigar says there is some cost shift involved when people go solar, but it's 'far smaller than what people are suggesting.' 'I think the bigger problem is that it feels bad when your bills are going up. And a bunch of people that have the means to put solar on their roof are getting a good deal, and all of your neighbors are not getting a good deal,' Jigar said. Most of us—whether we have solar panels or not—can look at our utility bill and clearly see charges related to solar panels. So, utilities are making us all pay extra while our neighbors with solar enjoy lower electric bills? It doesn't sound fair, but Brad and the CALLSSA team crunched the numbers and said the solar cost shift is extremely inflated and created with 'faulty math.' 'It's really very creative how [utilities] have built this methodology and storyline that has sunk in with a lot of policymakers. And they push it so hard and in such a widespread fashion that it's difficult to counter,' Brad said. It's not just California; the nonprofit Solar United Neighbors compiled numerous studies from Mississippi to Maine to Nevada and 'found little or no evidence for a 'cost shift' from rooftop solar customers.' Similarly, a report from Brookings found that the economic benefits of solar homeowners not only outweigh the costs but, in most cases, provide a 'net benefit' for the utility and non-solar ratepayers. 'People are catching on to that fact, and the data is pretty clear how much they've increased their spending,' said Brad. 'To deflect attention away from them, they've come up with this elaborate 'cost shift' story saying solar customers are to blame.' Utilities say they have to increase our rates to bring more electricity onto the grid during moments of high demand, like on a hot summer day when everyone is cranking their AC. But Brad explained that one of the biggest holes in the cost shift theory is that when homes generate their own electricity, they actually help offset this peak power demand. 'Normally, you expand the grid in order to serve a higher peak load. We've kept peak load constant, yet they're spending three times as much money as they did 15 years ago,' Brad said. Utilities are painting solar owners as the scapegoat for high rates, but really, it's the opposite. Research shows rooftop solar saved California ratepayers $1.5 billion in 2024 alone. Home solar supplies much-needed electricity to the grid, but Brad claims that throws a wrench in the utility's profits. 'Utilities feel threatened by customer solar and storage because it reduces their profit motive, their ability to rate base grid expansion, which is what drives their profits,' Brad explains. 'In California, there's enough solar that they feel like we're really taking weight off the grid and causing them to build less infrastructure, hurting their profits. So they've gone after us in a very strong way here, and that is spilling over into other states, sadly, where you don't have nearly as much solar. And yet this utility playbook is playing out across the country.' It comes down to simple supply and demand: Utilities are in the business of generating electricity and selling it to us. When you produce your own electricity with solar, that threatens their business model and their large paychecks. To try and simply answer the question of why your electric bill is so high, it's because our power grid is old and overloaded. And the way most utilities are fixing it is akin to slapping a very expensive band-aid on a gaping wound. Oh, and we're paying for that band-aid.
