News

Dec 13, 2023

Utility Costs Are Rising: How To Pay Your Bills As Heat Wave Surges and Relief Agencies Struggle To Meet Demand

Electric bills could surge by 12% this summer, according to estimates from the National Energy Assistance Directors Association (NEADA). By the end of August bills could reach a monthly average of

Electric bills could surge by 12% this summer, according to estimates from the National Energy Assistance Directors Association (NEADA). By the end of August bills could reach a monthly average of $578, up from $517 last year. In the West and South Central U.S., including Texas, bills could be up to $706 from $642 last year.

Roughly 84 million Americans are under heat advisories — including areas of California, Oregon, and Idaho where it rarely gets this hot. Relief organizations that provide financial assistance for utility bill payments are struggling under the demand.

“It’s only July and we’re already seeing almost 2,000 people calling every week, which is very unusual,” Denise Stepto, chief communications officer at Denver’s Energy Outreach Colorado, told NBC News.

Typically, the Low Income Home Energy Assistance Program (LIHEAP) offered through the Department of Health and Human Services focuses primarily on winter fuel costs. This federal program, which is administered locally by states — much like SNAP — helps low-income households pay to heat or cool their homes.

However, funds are limited and often run out early in the year. On average, only 20% of the households who qualify receive assistance through LIHEAP, according to the U.S. government’s Office of Community Services.

A mild winter helped boost natural gas supplies, resulting in costs roughly 60% lower than last year. But air conditioners and pool filters run on electricity. Wind and solar power don’t work as well in heat waves.

Mohammed Hamdaoui, vice president of renewables and power at research firm Rystad Energy, explained that heat waves often create stagnant atmospheres, which means turbines create less wind power.

And solar can work well, but when air conditioners need to run through the night, solar panels can’t keep up with the constant demand. “This is a really new economic problem,” said NEADA’s Mark Wolfe.

LIHEAP faces a dilemma of holding back funds during the winter months to accommodate for higher electric bills in the summer.

If you are struggling to pay your utility bills this summer, call your provider. Often, they will let you establish a no-interest, no-fee payment plan. It will bump your bills even higher, but you can take as long as 12 months to pay it off. During that time, you may be able to find a side gig where you can earn $1,000 or more.

If you have good credit, you may also be able to open a credit card with a 0% introductory APR for 12 months, pay your bill on the card, and then pay it off over time.

You can also take steps to use less air conditioning on hot summer days. We often think of weather-proofing as a task for the winter months, but you can take steps to ensure your AC operates at maximum efficiency.

Make sure your air conditioner is maintained properly. Change or clean the air filters to help your AC run more efficiently. If you have central AC, clean the evaporator coil, which also collects dirt that can reduce airflow.

Inspect the seals around in-wall or in-window AC units and replace if necessary to help the cool air stay inside your home. Also, install attic fans or window fans to circulate cool air.

Check with your local HHS or LIHEAP to see if you qualify for grants for energy efficient improvements, such as new windows or new air conditioning units.

Keep your AC on the highest temperature you can tolerate and still be comfortable. The U.S. Environmental Protection Agency recommends a setting of 78 degrees during the day and 82 degrees at night. This is likely too warm for many people. Keeping your thermostat at 72 degrees or higher can save as much as 3% on your electric bill.

When you aren’t home, the EPA suggests, turn your thermostat to 85 unless you have pets — in that case, you should maintain a temperature of roughly 80 degrees for their safety.

The bottom line? With energy use rising year round due to climate change, households and government assistance programs will need to re-think budgets to account for increased utility costs.

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