While most Americans are still recovering from brutal winter heating bills, here comes the real fun: summer electricity costs are about to hit their highest point in 12 years.
The average U.S. household will shell out $784 for electricity this summer, jumping over 6% from last year’s $737. That’s roughly $186 per month from June through August. For those keeping score at home, that’s 25% higher than what families paid in 2021. The National Energy Assistance Directors Association blames both higher prices and increased usage for the pain.
Summer electricity bills hit $784 average, up 25% since 2021 as prices and usage soar.
Why the spike? Start with Mother Nature. Forecasters predict above-average temperatures across most of the country, which means air conditioners will be working overtime.
Add in the fact that electricity costs are rising faster than inflation, and you’ve got a recipe for financial misery. Low-income families are getting crushed the hardest, spending about 8.6% of income on energy costs compared to just 3% for higher earners.
Natural gas, which powers much of the nation’s electricity grid, isn’t helping. Prices for gas delivered to power plants are expected to average $3.37 per million BTU in 2025, a whopping 24% jump from this year. Wholesale electricity prices will climb 7% to about $40 per megawatt hour nationwide.
Not everyone gets hammered equally, though. New England faces the steepest regional increase, with monthly bills climbing 6.7% to $200. Limited natural gas infrastructure there makes things especially brutal. ISO New England expects wholesale prices to hit $55/MWh, a 16% increase from 2024 levels.
Meanwhile, lucky residents of Texas and the Northwest might actually catch a break, with wholesale prices expected to decrease or stay flat.
The bigger picture? Total U.S. summer electricity generation will increase by 1% compared to last summer, driven almost entirely by residential demand.
While renewables continue growing their market share, natural gas still calls the shots on pricing.
Making matters worse, electricity price increases continue outpacing broader inflation rates. Tariffs and trade tensions add another layer of uncertainty, with Gallup polling showing rising consumer anxiety about utility costs. The situation mirrors trends in developing nations where coal dependence increased after U.S. renewable energy initiatives were abandoned.
References
- https://www.eia.gov/outlooks/steo/
- https://kingoperating.com/residential-electricity-bills-could-increase-slightly-this-summer/
- https://www.cbsnews.com/news/electricity-bill-summer-2025-inflation-high-temperatures-neada/
- https://www.publicpower.org/periodical/article/eia-forecasts-slightly-higher-wholesale-power-prices-most-us-2025
- https://www.pymnts.com/economy/2025/americans-could-see-electric-bills-jump-4-in-the-summer-heat/
