*This article was last updated on February 6th 2024
If you’re like most homeowners, you might be getting a little anxious about utility costs. Energy prices across the U.S. are surging to the highest levels in 15 years and 15 states have seen their home electricity rates increased by at least 10% from January of last year. Roughly 1 in 6 American households are behind on utility bills and in the UK, household energy bills are up 80% compared to last year! So, what’s the reason? Natural gas, bad weather and utility investments.Natural gas accounts for about 37% of electricity in the U.S. and the price has pretty much tripled since the middle of last year. Have a look at the rising cost of natural gas prices over the last few years. Notice a trend?
Remember the big freeze in Texas? It turns out the natural gas wellheads don’t fare well in freezing temperatures. Other extreme weather events of the last couple years like the heatwaves in the West and a hurricane in Louisiana have challenged domestic supply. After hurricane Ida, oil & gas producers had to pause production. Additionally, the U.S. has been increasing its exports of natural gas to Europe since 2016. As demand in Europe increases due to recent geopolitical events, that drives up the prices here by reducing supply. Power companies are seeing the writing on the wall.Utility companies are investing heavily into renewable energy infrastructure to mitigate against shortages in fossil fuels. But these spending plans are further boosting rates at a time when natural gas prices are already high. Navigate to your local utility company below to learn more about rising energy costs in your area. |
You could pay an average of 11% more than you do now if the utility’s proposed rate hike is approved by the Arizona Corporation Commission [in 2024]. And that’s after your current rates already went up [last] year, according to utility experts and consumer advocates.
APS said that line-items like the power supply adjustor and the court surcharge added 8.7% to bills this year. The changes reflect actual costs incurred to provide reliable service to customers, APS said.
When changes go into effect
December 1, 2023
How does this affect the average bill?
The average residential customer would see an impact of approximately 13.6%, translating to around $18 per month.
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SRP says the hikes are a result of rising natural gas costs.
“This is due to the addition of new renewable and battery storage projects, including some that have become more expensive because of supply chain disruptions, as well as higher costs associated with procuring natural gas and long-term purchased power commitments needed to ensure reliability,” officials said in a news release.
The utility’s executive board approved two increases last year, and bills last November increased by nearly 5%.
When changes go into effect
SRP’s rate increase went into effect November 1st 2023.
How does this affect the average bill?
Salt River Project is planning a rate hike of around $12 a month, with residential customers paying on average about 8% more.
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The Arizona Corporation Commission approved an increase to Tucson Electric Power Rates, and they go into effect September 1, 2023.
This will be an average $11 a month increase. Much of that will go toward basic equipment and maintenance to keep power flowing. TEP notes technology and security upgrades are needed to make electricity flow smoothly and safely. But the increase also passes along some higher energy and operating costs to customers.
Fact Finders research found an 11% increase in the cost of wholesale energy since the last rate hike in early 2021. That mirrors the 10% being tacked onto your bill.
When changes go into effect
TEP’s rate increase went into effect September 1st 2023.
How does this affect the average bill?
Home customers of Tucson Electric Power (TEP) will experience an average increase of approximately $11 in their monthly bills starting September 2023..
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Already, the New Year looking more expensive for people in the Las Vegas Valley — it looks like your electric bill will go up.
The Public Utilities Commission of Nevada has approved NV Energy’s request for a rate hike.
NV Energy expects customers to see an average increase of around 3.3%. That averages out to around $6 more a month. The company says the higher rates will help pay to upgrade power lines and make other improvements to the system across southern Nevada.
When changes go into effect
January 2024
How does this affect the average bill?
The rate for the average single family home would increase by 2.68 percent, or $5.52 monthly. Multi-family residential customers will see a 1.21 percent increase, which would boost their monthly bill by $1.36.
NV Energy is also proposing to increase the basic service charge for customers by $6 from $12.50 a month to $18.50. In a news release NV Energy stated the increased basic service charge increase would “better align” the costs incurred by providing electric service to customers.
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CenterPoint Energy has filed with the Public Utility Commission of Texas on Dec. 14 to increase customers energy bills by February 2024, according to its proposal.
The increased rate would help cover the cost of CenterPoint Energy’s investments to upgrade and build powerlines that are “necessary to maintain a safe and reliable distribution system,” the proposal stated.
When changes go into effect
February 2024
How does this affect the average bill?
CenterPoint’s new rate is 5.46/ kWh, an increase of 1.7 cents/ kWh over the rate customers have paid since March 1, 2023. For a customer using 3000 kWhs a month, you will pay an extra $51 after Sept. 1.
In Texas New Mexico Power’s service area, TDSP charges went up by 1.5 cents/ kWh. Customers in TNMP’s area will see an increase of $45 using 3000 kWh of electricity.
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What does this all mean for you… and how can you protect yourself from rising energy costs?
The good news is that homeowners in the Southwest are lucky to live in a place where they can count on the sun shining. Solar power is not just about immediate, monthly savings. Homeowners who go solar are protecting themselves against the future of rising energy costs by locking in their utility rates and producing their own energy.
Learn more about solar in your state by visiting our Locations Page and selecting your state & city.
Interested in going solar to take your power back and mitigate rising energy costs?
You can start by evaluating your home’s energy potential. Google’s Project Sunroof is a cool tool that uses satellite imagery and data to analyze the solar potential for your home. By entering your address into the tool, we’ll calculate your savings and get you a ballpark solar estimate. When you’re ready, we’ll put you in touch with a veteran energy consultant. Get started below.
