\n
![](\"https:\/\/fortune.com\/img-assets\/wp-content\/uploads\/2024\/07\/GettyImages-93259024-e1722288804119.jpg?w=2048\")
<\/p>\n [ad_1]
\n<\/p>\n
And now, climate change is coming for American pantries<\/a>. Indeed, one in three American households are cutting back on groceries to help pay for their utility bills as 75% of them expect their expenses to increase during the summer and \u201ccause them financial strain.\u201d The figures are according to survey results of 2,000 U.S. adults by PowerSetter<\/a>, an energy comparison platform that educates consumers about different energy plans and options. For context, July 22 was the hottest day recorded on Earth<\/a>, according to satellite data<\/a>.<\/p>\n \u201cExtreme heat is driving higher energy consumption. Households are more likely to turn up the AC amid the raging heatwave, which increases their energy consumption and associated expenses,\u201d Mark Feygin, founder and CEO of PowerSetter, tells Fortune. <\/em>\u201cHowever, the problem doesn\u2019t end there, as utility providers have been forced to increase their prices to keep up with inflation. While many consumers are cutting back on electricity usage because they simply can\u2019t afford the growing bills, they still might end up paying more than the year before.\u201d<\/p>\n In some of the hottest states in the U.S. including Texas, Oklahoma, Arkansas, and Louisiana, consumers can expect to pay an average of $858 on their June through September bills, according to National Energy Assistance Directors Association (NEADA) forecasts<\/a>. West Virginia, Virginia, North Carolina, South Carolina, Georgia, Florida, Delaware, Maryland, and Washington, D.C. can expect to pay $723, which accounts for 16% to 23% of the average salary in these states.<\/p>\n Not only are Americans cutting their grocery budgets to cover the mounting utility costs, but one in three households are also spending less on outdoor dining and entertainment such as concerts, events, and paying for streaming services to be able afford their AC, survey results show. Plus, about 20% are canceling their summer vacations and nearly 50% are making other budget cuts to make ends meet.<\/p>\n Consumer energy bills are up nearly 30% year-to-date during just the past 10 years with 2022 showing the largest annual increase in average residential electricity spending since the early 1980s, according to the U.S. Energy Information Administration<\/a>. Based on the typical monthly energy usage in the U.S., Americans spend more than $151 on their electric bills alone.<\/p>\n There are several factors at play explaining the increase in energy bills. Global warming and climate change have undoubtedly contributed to higher energy bills, experts say, since more energy is required to cool a home with higher external temperatures.\u00a0<\/p>\n \u201cWeather is becoming more volatile and extreme,\u201d Andrew Meyer, CEO of home energy advisory Arbor<\/a> that helps consumers find lower energy rates, tells Fortune<\/em>. \u201cWhen it\u2019s hotter, we use more electricity to cool our homes. When it\u2019s cold, we use more gas to heat our homes.\u201d<\/p>\n But while global warming and climate change \u201ccertainly play a part in how high energy bills have gotten, but it\u2019s not necessarily just in the way you might think,\u201d Meyer says. A major problem for electric utilities, however, has been increasing demand is also causing energy prices to rise.<\/p>\n \u201cConsumers are both using more and paying more per unit of energy,\u201d Meyer explains. Energy units are measured in kilowatt-hours (kWh), and can have a \u201chuge impact on our bill totals at the end of the month,\u201d Meyer adds.<\/p>\n Indeed, more than two times the demand for electricity year-over-year across both consumer and industrial sectors is also \u201cputting pressure on energy bills as utilities race to make sure we have the right infrastructure in place to support that,\u201d Robert Brook, senior vice president at Neara<\/a>, a company that uses machine learning to help utilities improve their infrastructure, tells Fortune<\/em>. Extreme weather episodes have also had an impact on monthly energy bills. Brook calls this one of \u201cdownstream effects of global warming\u201d that have added to energy costs.<\/p>\n \u201cAlready aging infrastructure is increasingly buckling under sustained environmental pressure,\u201d Brook says. \u201cPreventing outages requires more vigilance than ever,\u201d but that comes at a higher cost and shows up on consumer energy bills.\u00a0<\/p>\n There\u2019s no fool-proof way to try to lower your energy bills, experts say, especially if you live in a regulated energy market<\/a>, where a utility company owns all of the electric transmission lines and associated infrastructure like power poles, power lines, and transformers. These companies generate electricity and directly sell it to customers, making it impossible for consumers to shop around for better rates. Only 13 U.S. states are deregulated<\/a>, allowing customers to choose from where they buy electricity.<\/p>\n \u201cIt\u2019s imperative to keep a close eye on how much you are being charged per kilowatt-hour,\u201d Meyer says. \u201cIn states that are deregulated\u201413 total\u2014all customers have a choice to shop around for rates, which can be a great way to lower your overall energy bill.\u201d\u00a0<\/p>\n But consumers who live in regulated energy markets have some options for cutting energy costs.\u201d<\/p>\n \u201cIf you live in an area served by a monopoly utility, there are plenty of other ways to go,\u201d Feygin says. Some providers will charge more during peak hours, so Feygin suggests adjusting consumption based on those hours.\u00a0<\/p>\n \u201cIf you tend to use less energy during the peak hours, typically the early evening, you could save hundreds of dollars per year,\u201d Meyer says. \u201cFor households with smart thermostats or electric vehicles, it\u2019s possible to program those devices to avoid usage during the peak hours, making the savings easier to realize.\u201d<\/p>\n Meyer also suggests looking into community solar energy programs, which allow consumers to remotely subscribe to a solar farm and get credits on monthly bills that can result in 5% to 10% in savings.<\/p>\n There are also other \u201csimple tricks\u201d aside from buying less food at the grocery every week to help compensate for higher energy costs. Switching to energy-efficient light bulbs and appliances can \u201cgo a long way,\u201d Feygin says, along with using the washing machine on full loads and letting your clothes and dishes air dry.<\/p>\n \u201cLittle savings here and there can add up to a significant sum and won\u2019t require too much effort,\u201d Feygin says.\u00a0<\/p>\n<\/div>\nWhy have AC bills gotten so expensive?<\/h2>\n
Ways to save on energy bills<\/h2>\n
Recommended Newsletter: <\/strong>CEO Daily provides key context for the news leaders need to know from across the world of business. Every weekday morning, more than 125,000 readers trust CEO Daily for insights about\u2013and from inside\u2013the C-suite. Subscribe Now<\/a>.<\/div>\n