Many Americans are cranking up the air conditioning this summer to cope with scorching temperatures. And it’s costing them.
The cost to keep homes cool between June and September could reach a 10-year high this summer, say two groups advocating for programs to help low-income residents pay their energy bills. The groups projected that the average cost across the country could be $719, a nearly 8% increase from the same period last year. In some regions that figure is higher; in Southern states like Texas, the average cost could hit $858.
“There’s a price to ignoring climate change,” said Mark Wolfe, the executive director of the National Energy Assistance Directors Association, which conducted the analysis with the Center for Energy Poverty and Climate. “The amount of electricity people use is going to go up, and it’s a reaction to extreme heat.”
The forecast comes as the Southwest swelters under a heat wave that’s moving across the US this week. Federal data indicates heat waves happen six times a year on average, up from about twice a year during the 1960s. Meanwhile, climate scientists said May was the hottest month on record globally, continuing a 12-month streak where each one was warmer than the last.
The culprit is the climate crisis, and burning fossil fuels for electricity is the largest source of greenhouse-gas emissions trapping heat in the atmosphere. The US still relies on natural gas and coal to produce 60% of its power.
The forecast for summer cooling costs is based on federal data on regional electric prices, summer temperatures, and residential air conditioning, Wolfe said. His group’s predictions are slightly higher than those by the US Energy Information Administration in June, which forecast average monthly bills of $173, or a 3% increase over last year.
“We are assuming a higher rate of temperature change, and recent heat waves are bearing this out,” Wolfe said. “We also assumed a slightly higher rate for electricity.”
Many factors affect electricity prices, including the costs of fuel, renewable energy, and power-grid maintenance. Wolfe said the cost projections would’ve been higher if natural-gas prices hadn’t been falling since the global energy crisis in 2021. But he emphasized that burning more fossil fuels would worsen the already deadly and expensive heat waves causing Americans to use more energy.
Wolfe argued that federal, state, and local policymakers needed stronger policies and programs to protect vulnerable people during scorching summers. Cities with typically hot summers — including Phoenix; El Paso, Texas; and St. Louis — set up public cooling centers, but that isn’t enough to help people stay safe, Wolfe said.
A 2020 survey from the US Energy Information Administration found that nearly 20% of families earning less than $20,000 had no air conditioning. Those who do may not turn it on in an effort to avoid higher bills, Wolfe said. Meanwhile, 33 states don’t prevent utility companies from disconnecting residential power during extreme heat, putting children and older adults in particular at risk.
Wolfe argued that more states and cities should adopt shutoff protections and that Congress should boost funding for the Low Income Home Energy Assistance Program, which covers a portion of low-income families’ utility bills. He estimated that about 1 million fewer households would get financial help this year because Congress approved less funding for the program than it did for fiscal 2023.
Homeowners could also install energy-efficient appliances, such as electric heat pumps, and take advantage of tax credits and rebates under the Inflation Reduction Act to make retrofits more affordable.
Some states are expected to this year start doling out rebates to homeowners with low and moderate incomes. The program is designed to offer point-of-sale discounts on heat pumps, electric stoves, insulation, new breaker boxes, and wiring — capped at $14,000 per household. Landlords who rent to people in low and moderate income brackets are also eligible. New York this month became the first state to open up applications.
“We need to change the way we think about helping families during the summer and how to upgrade their homes so they can stay cool while not increasing energy use and emissions,” Wolfe said. “Now is the time to prepare for higher temperatures.”
Are you struggling to pay your energy bill this summer or worried about power shutoffs? Contact cboudreau@businessinsider.com
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