Cooling crisis: Scorching temperatures and rising energy costs leave Americans feeling burned
A historic heatwave is impacting millions of Americans with some experts predicting that America’s 250th could be the hottest July Fourth(opens in a new window) on record. Extreme heat(opens in a new window) can be dangerous for everyone, and especially for older adults and those with preexisting health conditions.
The challenge of staying cool and safe this summer in particular has been especially burdensome as cooling costs are expected to hit a record high. Americans are projected to spend around $800 on electricity between June and September, an increase of 10.5%(opens in a new window) from the same time last year. Many people will need to rely on air conditioners and other appliances even more than usual during this record heat, but the financial strain of paying more than ever for the electricity to power these appliances has left many Americans sweating it out.
Ohio University Associate Professor of Economics(opens in a new window) Daniel Karney(opens in a new window), Ph.D., said that nationally, many factors are driving higher electricity prices that are rising even faster than inflation. Karney is an expert in energy economics, energy policy and climate change.
“On the demand side, a strong consumer preference for cool residential housing puts upward pressure on prices in the Summer, as well as an overall increase in electricity usage from data centers,” said Karney. “On the supply side, utilities have been able to pass along infrastructure improvements costs to consumers. As a result, the price of electricity has outpaced inflation, and this is likely to continue.”
Ohio University Director of Sustainability(opens in a new window) Sam Crowl(opens in a new window) agrees with Karney that surging demand and complications in supply are to blame for the historical increases in utility costs. Crowl said that recent capacity auctions by regional grid operators have resulted in record-high bid prices, driving up costs for consumers.
The challenge of staying cool and safe during this summer's historic heat wave has been especially burdensome as cooling costs are expected to hit a record high. Many will rely on air conditioning even more than usual during this record heat, but the financial strain of paying more than ever for the electricity to power these appliances has left many Americans sweating it out.
Cooling Crisis