Here’s were it’s going to cost more to cool your home this summer

Home refrigeration costs in the US are expected to rise along with the temperature this summer, even more burdening family budgets.

The Energy Information Administration (EIA) is forecast that residential electricity bills from June to August will average $173 per month, about 3% more than the same period last year. The agency attributes the projected cost increase to what it expects to be an increase in electricity consumption during the hot summer months.

Tens of millions of Americans in the Southwest, Midwest and other regions are suffering from a brutal heat wave. Rising temperatures and other risks linked to climate change are prompting environmental and labor groups to urge the Federal Emergency Management Agency to add extreme heat to your list of scenarios worthy of being labeled a major disaster.

Better news for consumers is that higher utility bills will likely be partially offset by falling US electricity prices due to a decline in the cost of natural gas.

“Average U.S. wholesale energy prices, which are an indicator of production costs, were relatively high in 2021 and 2022 but declined 30% to 50% in 2023, largely due to falling natural gas prices,” stated the EIA. “We expect these lower electricity supply costs to drive down retail prices in the coming months.”

About 90% of U.S. homes have air conditioning, according to the EIA. In general, residents of southern states along the Gulf Coast, where summer weather tends to be hot and humid, consume more electricity than customers residing in states along the Pacific Coast and New England, where the climate is milder because they are less dependent on air conditioning.

Where electricity bills can increase the most

Americans in California, Oregon and Washington are predicted to see the sharpest jump in electricity rates, a 7% increase over the previous year, the EIA predicted, while residents in the Mid-Atlantic states could see an increase of 4%. In contrast, the agency expects rates in New England to fall 7% between June and August.

In dollar terms, utility customers in New York, Pennsylvania and Washington, D.C., could see the largest increase in bills – about $14 per month – due to the combined effects of increased electricity consumption and higher prices , according to the energy agency. In the Pacific region, residential electricity bills are expected to increase by an average of $11 per month, while across New England electricity costs are expected to fall by $2.

Other groups say refrigeration costs could be even higher financial burden for familiesgrowing up to 8% from June to September, according to the National Energy Assistance Directors Association (NEADA) and the Center for Energy Poverty and Climate (CEPC).

Prolonged periods of intense heat can be a particular burden for low-income families, 20% of which do not have air conditioning, according to the groups. In some cases, even families with AC choose not to use it for fear of not being able to pay the electricity bill. But alternative solutions to high heat are becoming unsustainable as heat waves persist for days or weeks.

“In less extreme situations, a family might face a hot day by opening the windows, taking a cold shower and waiting for it to cool down in the evening. But when the heat persists for weeks, or the outside air is dangerous, opening a window will only make things worse,” the organizations said in a recent report.