Latest news with #coolingcosts
Forbes
6 days ago
- Business
- Forbes
Record Heat And Higher Utility Costs: Smart Ways To Save With Rewards Cards
Editorial Note: We earn a commission from partner links on Forbes Advisor. Commissions do not affect our editors' opinions or evaluations. This summer, record-breaking heat isn't just uncomfortable—it's hitting budgets where it hurts. Climate change is driving longer and hotter heat waves across the U.S. In summer 2025 alone, dangerously high temperatures and humidity have impacted over 255 million people. As electricity bills rise during the summer, finding creative ways to cut cooling costs is imperative. Cash-back credit cards can take some heat off your wallet, helping you stay cool all season long. Utilities are passing on higher generation and delivery costs to customers, and many households are already feeling the impact. The U.S. Energy Information Administration says residential electricity bills are expected to average $178 per month between June and September 2025, up from $173 during the same period in 2024. A $5 difference might sound insignificant, but over a long, hot summer, it adds up—especially for families managing stretched-thin budgets. One tool to use to fight against soaring energy bills is a cash-back credit card . The right card won't cool down your living room, but it might help ease the sting when the bill arrives. One popular choice is the Bank of America® Customized Cash Rewards credit card . It offers 6% cash back for the first year in the eligible category of your choice, 2% cash back at grocery stores and wholesale clubs (up to $2,500 in combined choice category/grocery store/wholesale club quarterly purchases), and unlimited 1% cash back on all other purchases. After the first year from account opening, earn 3% cash back on purchases in your choice category and 2% cash back at grocery stores and wholesale clubs up to the quarterly maximum. $200 online cash rewards bonus after you make at least $1,000 in purchases in the first 90 days of account opening Credit Score ranges are based on FICO® credit scoring. This is just one scoring method and a credit card issuer may use another method when considering your application. These are provided as guidelines only and approval is not guaranteed. Additionally, new cardholders can earn a $200 online cash rewards bonus after spending $1,000 in purchases in the first 90 days of account opening. The best part? It has a $0 annual fee, meaning you can earn rewards without extra costs. Another solid option is the Wells Fargo Active Cash® Card (rates & fees). It currently offers a $200 cash rewards bonus after spending $500 in purchases in the first 3 months, along with 2% cash rewards on purchases. That extra cash back can add up, providing some spare change to go toward paying your next utility bill. Also, with no annual fee, this card provides a practical way to earn rewards as utility costs continue to climb. While using a cash-back credit card to earn rewards on your utility bills, check if your utility provider charges a processing fee for credit card payments. Those fees could eat into, or even cancel out, your potential savings. Extreme heat isn't just something that makes you sweat the moment you step outside—it can make you sweat when a costly bill arrives, too. However, using tools like 2% cash-back credit cards to pay utility bills can help you earn rewards that offset the climbing costs expected this summer.
CNN
16-05-2025
- Business
- CNN
Cooling your home could hit a record high this summer
Keeping cool could cost a lot more this summer — yet another financial squeeze for many inflation-weary consumers. Americans can expect to shell out a record $784, on average, to cool their homes from June through September, according to a new analysis by the National Energy Assistance Directors Association and the Center for Energy Poverty and Climate. That's up 4.2% from the same period last year and 14% higher than 2020, when folks only paid an estimated $688, after accounting for inflation. The tab is projected to rise both because electricity prices are increasing faster than inflation and another hot summer is in the forecast, said Mark Wolfe, executive director of the association, which examined summer cooling costs since 2014. Residents of New England and the Midwest will be hit especially hard, with costs projected to increase between 13% and 18% from last year. Only those living in the Pacific, who were expected to shoulder a spike in cooling bills last summer, could catch a break — with costs forecast to decline nearly 7%. Although inflation has become more muted in recent years, prices remain high and household debt is on the rise. What's more, escalating costs for both winter heating and summer cooling are putting pressure on Americans' wallets year-round. Heating bills this past winter, which was a cold one, were expected to jump nearly 9%, according to the association. 'People don't get a chance to catch up,' Wolfe said. More than 21 million Americans — about one in six — are behind on their energy bills, the association estimates. Consumers owed their utility companies a total of $24 billion in March, up from $17.5 billion in January 2023. For some people, particularly those with lower incomes, rising costs can have severe consequences — especially if they are more reluctant to turn on the air conditioning. Heat-related deaths are on the rise, with just over 2,300 people succumbing in 2023, the hottest summer on record, compared to fewer than 1,200 in 2020, according to a study published in the medical journal JAMA. 'Without access to affordable cooling, many will be at risk of heat stroke and other health impacts associated with rising temperatures,' Wolfe said. At the same time, the federal Low Income Home Energy Assistance Program, which helps about 6 million Americans afford their utility bills, does not have enough funding to aid all those who qualify. LIHEAP is doling out $4.1 billion this fiscal year, down from $6.1 billion two years ago, when Congress provided additional support in the wake of soaring energy prices during the Covid-19 pandemic. Only 26 states offer summer cooling assistance through LIHEAP, Wolfe said. In his budget blueprint, released earlier this month, President Donald Trump proposed eliminating the program. The White House said it isn't necessary in part because states have policies preventing utility disconnections for low-income residents, which it argues means LIHEAP mainly benefits utilities. Only 19 states and the District of Columbia offer summer shutoff protections, covering about half the US population, Wolfe said. And in many of them, the rules are outdated and inadequate.
CNN
16-05-2025
- Business
- CNN
Cooling your home could hit a record high this summer
Keeping cool could cost a lot more this summer — yet another financial squeeze for many inflation-weary consumers. Americans can expect to shell out a record $784, on average, to cool their homes from June through September, according to a new analysis by the National Energy Assistance Directors Association and the Center for Energy Poverty and Climate. That's up 4.2% from the same period last year and 14% higher than 2020, when folks only paid an estimated $688, after accounting for inflation. The tab is projected to rise both because electricity prices are increasing faster than inflation and another hot summer is in the forecast, said Mark Wolfe, executive director of the association, which examined summer cooling costs since 2014. Residents of New England and the Midwest will be hit especially hard, with costs projected to increase between 13% and 18% from last year. Only those living in the Pacific, who were expected to shoulder a spike in cooling bills last summer, could catch a break — with costs forecast to decline nearly 7%. Although inflation has become more muted in recent years, prices remain high and household debt is on the rise. What's more, escalating costs for both winter heating and summer cooling are putting pressure on Americans' wallets year-round. Heating bills this past winter, which was a cold one, were expected to jump nearly 9%, according to the association. 'People don't get a chance to catch up,' Wolfe said. More than 21 million Americans — about one in six — are behind on their energy bills, the association estimates. Consumers owed their utility companies a total of $24 billion in March, up from $17.5 billion in January 2023. For some people, particularly those with lower incomes, rising costs can have severe consequences — especially if they are more reluctant to turn on the air conditioning. Heat-related deaths are on the rise, with just over 2,300 people succumbing in 2023, the hottest summer on record, compared to fewer than 1,200 in 2020, according to a study published in the medical journal JAMA. 'Without access to affordable cooling, many will be at risk of heat stroke and other health impacts associated with rising temperatures,' Wolfe said. At the same time, the federal Low Income Home Energy Assistance Program, which helps about 6 million Americans afford their utility bills, does not have enough funding to aid all those who qualify. LIHEAP is doling out $4.1 billion this fiscal year, down from $6.1 billion two years ago, when Congress provided additional support in the wake of soaring energy prices during the Covid-19 pandemic. Only 26 states offer summer cooling assistance through LIHEAP, Wolfe said. In his budget blueprint, released earlier this month, President Donald Trump proposed eliminating the program. The White House said it isn't necessary in part because states have policies preventing utility disconnections for low-income residents, which it argues means LIHEAP mainly benefits utilities. Only 19 states and the District of Columbia offer summer shutoff protections, covering about half the US population, Wolfe said. And in many of them, the rules are outdated and inadequate.
CNN
16-05-2025
- Business
- CNN
Cooling your home could hit a record high this summer
Keeping cool could cost a lot more this summer — yet another financial squeeze for many inflation-weary consumers. Americans can expect to shell out a record $784, on average, to cool their homes from June through September, according to a new analysis by the National Energy Assistance Directors Association and the Center for Energy Poverty and Climate. That's up 4.2% from the same period last year and 14% higher than 2020, when folks only paid an estimated $688, after accounting for inflation. The tab is projected to rise both because electricity prices are increasing faster than inflation and another hot summer is in the forecast, said Mark Wolfe, executive director of the association, which examined summer cooling costs since 2014. Residents of New England and the Midwest will be hit especially hard, with costs projected to increase between 13% and 18% from last year. Only those living in the Pacific, who were expected to shoulder a spike in cooling bills last summer, could catch a break — with costs forecast to decline nearly 7%. Although inflation has become more muted in recent years, prices remain high and household debt is on the rise. What's more, escalating costs for both winter heating and summer cooling are putting pressure on Americans' wallets year-round. Heating bills this past winter, which was a cold one, were expected to jump nearly 9%, according to the association. 'People don't get a chance to catch up,' Wolfe said. More than 21 million Americans — about one in six — are behind on their energy bills, the association estimates. Consumers owed their utility companies a total of $24 billion in March, up from $17.5 billion in January 2023. For some people, particularly those with lower incomes, rising costs can have severe consequences — especially if they are more reluctant to turn on the air conditioning. Heat-related deaths are on the rise, with just over 2,300 people succumbing in 2023, the hottest summer on record, compared to fewer than 1,200 in 2020, according to a study published in the medical journal JAMA. 'Without access to affordable cooling, many will be at risk of heat stroke and other health impacts associated with rising temperatures,' Wolfe said. At the same time, the federal Low Income Home Energy Assistance Program, which helps about 6 million Americans afford their utility bills, does not have enough funding to aid all those who qualify. LIHEAP is doling out $4.1 billion this fiscal year, down from $6.1 billion two years ago, when Congress provided additional support in the wake of soaring energy prices during the Covid-19 pandemic. Only 26 states offer summer cooling assistance through LIHEAP, Wolfe said. In his budget blueprint, released earlier this month, President Donald Trump proposed eliminating the program. The White House said it isn't necessary in part because states have policies preventing utility disconnections for low-income residents, which it argues means LIHEAP mainly benefits utilities. Only 19 states and the District of Columbia offer summer shutoff protections, covering about half the US population, Wolfe said. And in many of them, the rules are outdated and inadequate.
