The Energy Information Administration (EIA) recently unveiled a report showing that the average U.S. household will spend $426 on electricity this summer. This amount is a three percent increase over last summer. The projected growth stems from a combination of higher prices and increased usage levels, the latter of which could obviously be impacted by cooler temperatures.
Electricity usage tends to peak during the summer months. Based on projections from the National Oceanic and Atmospheric Administration (NOAA), EIA expects cooling degree days, a measure of the number of days with temperature extremes which are higher and therefore cause demand more for electricity to run air conditioning, to be about two percent greater than last year.
NOAA is forecasting summer temperatures to be warmer throughout the eastern part of the country, while the western states are expected to experience a milder summer than last year. Projected changes in average household electricity usage for the summer range from six percent less electricity in the Pacific states to five percent more electricity use in the New England states.
Electricity prices are expected to be two percent higher than last summer due to higher costs for the fuels needed to generate electricity, especially natural gas. Rates are also rising as utilities update and improve their transmission infrastructure. Electricity prices are expected to be higher in all regions of the country.