Summer bill shock is coming

Summer is just around the corner, which means these A/C units are jammed. However, with Energy cost In the sweltering summer heat, the cost of cooling a home rises more than usual.

The US Energy Information Administration (EIA) has estimated that, on average, there will be a 3.9% increase in the price of electricity for US homes this summer. For the entire summer, the agency projects that the average household is expected to spend 0.9% more on electricity than in summer 2021, according to the Energy Information Agency.

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“The price hike is largely due to supply and demand,” said Nick Loris, vice president of public policy at C3 Solutions. “Especially for natural gas, which provides 38% of our electricity needs, we are operating in an environment of constrained supply and increasing demand.”

When the pandemic hit, “the prices were low and they stayed low, so there wasn’t much incentive to offer more,” Loris said. “As the economy opened up, demand increased and supplies exceeded. Russia’s invasion of Ukraine made matters worse.”

A PG&E worker walks in front of a truck in San Francisco. (AP Photo/Jeff Chiu/AP Newsroom)

Loris added that experts “especially caution that summer can be particularly expensive in the Northeast.”

Environmental impact assessment, which collapsed price increases for each region, He estimated that New England would be affected the most. It is estimated that households in the region will pay a 16.4% increase this summer, according to agency estimates. Meanwhile, households in the Central Atlantic are expected to pay 8.4% more this summer, and households in the South Atlantic are estimated to spend 6.5% more, according to the EIA.

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Utility companies are already issuing warnings to customers ahead of the summer months.

“With New England so reliant on natural gas to supply its electricity needs, continued rising global demand for natural gas and rising prices around the world have increased the rates of electricity supply here,” Eversource Energy, which serves customers in Connecticut, New Hampshire and Massachusetts, told FOX Business .

A Con Edison truck runs on Wall Street on April 02, 2020 in New York City. (Bruce Bennett/Getty Images/Getty Images)

Moreover, the company also noted that the rate of electricity supply to customers is adjusted regularly twice a year, and that the next proposed adjustment, which must be approved by regulators in each state, will come July 1 in Connecticut and Connecticut. Massachusetts and on August 1 in New Hampshire.

For example, in Connecticut, the current rate is 11.57 cents per kilowatt-hour. The proposed rate will be pushed to 12.19 cents per kilowatt-hour, pending approval.

“As a regulated power distribution company, we procure power for our customers in the competitive wholesale market – at prices driven by increases or decreases in demand combined with other global market forces,” Eversource Energy said. “This cost is passed directly to customers at no profit to the company and is subject to review and approval by the appropriate regulatory agency in each of our countries.”

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Additionally, the Pennsylvania Public Utilities Commission (PUC) issued a warning earlier this month that “most utilities will adjust their electricity generation rates on June 1st.” Many customers, “will see sharp increases in energy costs as summer approaches, between 6% and 45% depending on their electrical utility,” PUC continued.

Workers with Southern California Edison replace a transformer on Holt Street in Santa Ana, California on Friday, September 10, 2021. (Paul Persebach/MediaNews Group/Orange County Records via Getty Images/Getty Images)

The price change and increased electricity use that we typically see during the summer “make this a very opportune time for consumers to evaluate their energy options,” PUC said.

PUC encourages customers to “carefully review their electricity bills to understand the rates they will be paying” before June 1.

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Meanwhile, Consolidated Edison Inc. , energy for the approximately 10 million people living in it New York City and Westchester County, also estimated that summer bills, between June and September, would be higher.

The company estimated that New York City housing bills will be 11-12% higher than last year. In Westchester County, summer bills for residential customers are expected to be about 15% higher.

Last year, a New York City residential customer who used 350 kWh per month from June through September had an average monthly bill of $104.05, according to ConEd.

Meanwhile, a Westchester County residential customer using 500 kWh per month during the same period had an average monthly bill of $133.02, according to ConEd.

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