Household Energy Bills Rose Over 50% In 3 States Over Past 5 Years But Remained Stable In This Region

Author: Hayden Buckfire | July 30, 2024 11:42am

Energy prices have soared over the past five years as climate change-induced extreme weather has hit several regions of the United States; meanwhile, record-high temperatures have kept Americans indoors.

A new report contradicts the narrative that the switch to green energy is the sole factor impacting power costs.

The Data: S&P Global released a report on Monday recapping five-year trends in household power costs. According to the report, average US household electricity prices rose 21.9% between 2018 and 2023.

Prices rose the most in the following states during that period:

• Maine — a 65.6% increase.
• New Hampshire — a 51.3% increase.
• Massachusetts — a 50.5% increase.
• Connecticut — a 49% increase.
• California — a 47.8% increase.

The states mentioned above are concentrated in the U.S. Northeast. Maine had the highest power cost increase of any state — the Maine Public Utilities Commission told S&P Global that the figure was driven by deferred costs of imported natural gas, deferred storm costs and stranded assets from a net metering program.

California stands as an outlier given its West Coast geography. According to California’s Public Utilities Commission, nearly 13% of the monthly bill that PG&E Corp‘s (NYSE:PCG) residential customers paid in 2023 goes toward wildfire mitigation. In 2023, California regulators allowed PG&E to raise $2.6 billion through multiyear rate increases to risk-proof the San Francisco-based company’s operations.

Appalachian states also saw substantial price hikes — West Virginia household power rates rose 26% between 2018 and 2023, S&P Global’s data shows.

However, prices remained stable or even declined in the following Middle American states:

• North Dakota — a 6.6% increase.
• South Dakota — a 4.8% increase.
• Nebraska — a 4.4% increase.
• Wyoming — a 1.2% decline.
• Kansas — a 2.1% decline.

Why it Matters: Households have had difficulty keeping up with the rising cost of living.

Nearly 24% of U.S. households said they were unable to pay at least one energy bill in the past 12 months, according to a report from the National Energy Assistance Directors Association and the Center for Energy Poverty and Climate.

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Posted In: PCG