Why US Power Bills Are Surging

"Like most Americans this month, your most recent power bill may have given you a shock. Residential electricity rates have risen fast across the US- more than 30 percent on average since 2020 and almost double the rate of inflation in the past year-with no end in sight. It's not great for anyone's budget, whether you're a renter or an industrialist. High electricity prices ripple beyond consumers and throughout the whole economy, disrupting manufacturing, construction, transportation, and more."

"And, of course, electricity prices are a huge political issue. President Donald Trump campaigned on cutting energy prices in half, and now that they're moving in the wrong direction, he has taken to blaming renewables, the cheapest sources of new generation, and promised $625 million to the ailing US coal industry. Power bills are becoming a hot button in local politics, too, like the New Jersey governor's race, and you'll likely see them featured in more political ads."

"There are several dynamics driving the current power price spike. Rising electricity demand, volatile fuel prices, inflation, tariffs, a slowdown in transmission line construction, and long delays in adding new generators to the power grid are all conspiring to create more expensive utility bills. And these variables aren't changing direction anytime soon, so unfortunately your bills will likely rise further."

Residential electricity rates have risen more than 30 percent on average since 2020 and nearly doubled the rate of inflation in the past year. High power bills strain household budgets and ripple through manufacturing, construction, and transportation. Political leaders are responding by blaming renewable energy and proposing subsidies for coal while power prices become campaign issues. Multiple factors drive the spike: rising electricity demand, volatile fuel costs, inflation, tariffs, slowed transmission construction, and delays adding new generators. Those variables are expected to persist in the near term, suggesting further increases. Over time, a shift away from fossil fuels should lower costs and help rates level off.

Read at WIRED