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 year 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. |
The president of Arizona’s largest public utility, Arizona Public Service (APS), has proposed a monthly base rate hike of at least 23%. APS President Ted Geisler clarified that the average residential customer would see an impact of approximately 13.6%, translating to around $18 per month, after applying suggested reductions.
Geisler emphasized the need for the rate hike to keep up with Arizona’s energy growth while maintaining affordability.
APS has invested about $1.5 billion annually to meet Arizona’s growing energy needs. The proposed rate increase aims to generate a net revenue of approximately $460 million. If the Arizona Corporation Commission approves the hike, the new rates will be effective from December 1. The utility had filed the rate increase request on October 28, 2022, and public comment sessions are scheduled for June and July, followed by a public hearing on August 2.
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
Phoenix SRP customers in the Valley can expect higher power bills beginning in November.
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 utility says the new rates recover the cost of grid improvements, technology and security upgrades, new wind and solar power resources, and other investments made since 2018, as well as higher energy and operating costs. The grid improvements cost almost $1.8 billion and include new poles, transformers, power lines and renewable resources, according to the company.
When changes go into effect
September 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 next month.
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The increases, if approved, would net NV Energy an additional $92.7 million in annual revenue, according to its filing.
NV Energy defended the proposed increase to its return on equity as necessary to meet the capital investment needs for state renewable energy goals and to respond to the current economic environment of increased inflation and rising interest rates.
“The investments we make to provide power for our customers are critical to ensuring that families and businesses have reliable, affordable and sustainable power, especially during the hot summer months,” Doug Cannon, NV Energy CEO, said in a statement.
When changes go into effect
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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, under the general rate case application filed this week with the Public Utilities Commission. Multi-family residential customers would 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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You will notice a significant increase in your next electric bill if you live in a deregulated electric market in Texas, even if you use the same amount of electricity as last month.
Why the increase in your electricity bill? The companies that own the lines and wires increased transmission and distribution fees (TDSP fees) on Sept. 1. This is a pass-through charge on your electric bill. The TDUs charge the retail electric providers, and they pass the fees along to you.
When changes go into effect
After September 1, 2023
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.
