Energy Markets

Start saving: Experts predict electricity bills will hit their highest level in twelve years this summer

As summer approaches, one organization is warning households to prepare for higher energy bills.

As summer approaches, one organization is warning households to prepare for higher energy bills.
Anton Petrus
Maite Knorr-Evans
Maite joined the AS USA in 2021, bringing her experience as a research analyst investigating illegal logging to the team. Maite’s interest in politics propelled her to pursue a degree in international relations and a master's in political philosophy. At AS USA, Maite combines her knowledge of political economy and personal finance to empower readers by providing answers to their most pressing questions.
Update:

As the summer approaches and temperatures warm around the country, the National Energy Assistance Directors Association (NEADA) is forecasting higher energy bills this summer.

“This summer, consumers will be hit with yet another year of record-high prices for home cooling,” warns the organization.

Compared to last year, NEADA expects prices to surge 6.2 percent to $784, though some areas of the country will pay more and others less.

What is driving energy prices up?

The White House has claimed to be increasing energy production, namely, petroleum production and refinement, but these efforts don’t appear enough to bring prices down this summer.

According to the US Energy Information Adminstration, the amount of oil being refined in the US has not changed significantly in the first three months of the Trump administration, compared to the levels recorded during the same period in 2024.

The analysis provided by NEADA finds that energy prices are increasing faster than inflation, which contributes to the upward pressure on household energy bills. Additionally, NEADA expects summer 2025 to see average temperatures continue to rise, “reflecting the continuing impact of climate change and requiring additional energy to cool indoor spaces.

In releasing these forecasts, NEADA hopes to raise awareness about the lack of state and federal programs to support low-income households that may not be able to afford these higher energy costs.

“The dangers of extreme heat leave low-income families at heightened risk during warm summer months, when heat waves and prolonged periods of extreme heat are more common,” warns NEADA.

Which areas will see the highest and lowest energy bills?

The highest prices are expected to be paid by residents in the West South Central and New England, which represent the only regions where the average bill is forecast to exceed $900.

  1. West South Central - $996 
  2. New England: $922
  3. East South Central - $850 
  4. South Atlantic - $842 
  5. West Central - $758
  6. Mid Atlantic - $747 
  7. Mountain - $740 
  8. East North Central - $719 
  9. Pacific - $663 
  10. US Average - $784

The West South Central region, comprising Arkansas, Louisiana, Oklahoma, and Texas, is a significant energy resource producer rich in fossil fuels, including oil and natural gas. Despite this wealth, residents in these states face a substantial rise in summer energy bills, with estimates indicating an increase of up to 11 percent compared to last summer. This rise can be attributed to soaring demand during peak usage hours and ongoing supply chain issues affecting energy distribution.

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In contrast, the Pacific states, California, Oregon, and Washington, are projected to benefit from lower energy prices this summer. With an increase in renewable energy initiatives and investments in solar and wind technology, these states have managed to stabilize energy costs, with prices expected to decrease by approximately 4 percent, compared to last year.

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