Electricity Prices 13 Percent Higher This Year Than in 2022: EIA Projects

The national average summer monthly bill is expected to reach $186, an increase of 3.7% from last summer.

The Energy Information Agency (EIA) expects retail electricity prices to continue to rise this year, which are rising faster than inflation rates since 2022.

Home electricity prices are projected to be 13% higher this year compared to 2022. This is higher than the 11% increase in overall inflation projected over this period.

Meanwhile, the prices of residential natural gas, regular gasoline and heating oil are projected to be cheaper than 2025.

“Some countries with relatively high electricity prices may experience greater price increases than people with relatively low electricity prices,” the agency said.

“Home prices in the Pacific, Atlantic and New England census sectors (where consumers already pay far more than per electricity per kilowatt-tour) could rise above the national average,” he said.

Regarding power output, the US electricity sector is projected to generate 2% more electricity this year than in 2024, the EIA said in its May 1 short-term energy outlook report.

While electricity from natural gas is expected to decrease by 3%, generation from coal plants and solar power plants is estimated to grow by 6% and 34%, respectively.

As far as almost a few months of summer are concerned, electricity bills are set to be higher in June, July and August.

The EIA forecasts electricity prices this summer at an average of 17.16 cents per kilowatt hour nationwide, with an average monthly bill reaching $186, an increase of 3.7% from last summer.

The highest price per kilowatt hour is 29.02 cents in the New England region, with the Pacific and Mid-Atlantic Oceans expected to continue.

Regarding the average monthly bill, the Southwest Central region costs $224, followed by New England and the South Atlantic.

According to the EIA, roughly 60% of US power generation in 2023 came from fossil fuels such as coal, natural gas and oil. 21% from renewable sources, 19% from the nucleus.

“By 2025, solar energy production in the country is expected to increase by 75% and winds will increase by 11%,” the Ministry of Energy said.

The Trump administration is trying to strengthen America’s energy supply.

On March 12, Environmental Protection Agency (EPA) administrator Lee Zeldin announced 31 deregulation measures were being taken to “promote a great American comeback.”

This includes rethinking the following, including coal-powered “improperly targeted” power plants, regulations narrowing down the oil and gas sectors, and existing regulations on “improperly targeted” power plants for mandatory greenhouse gas reporting programs.

“Today is the biggest day of deregulation that our country has seen. We are driving straight to the heart of climate change religions, reducing the cost of living for American families, unleashing American energy, bringing car jobs back to the US and even more,” Zeldin said.

In April, President Donald Trump signed three executive orders and presidential declarations aimed at maintaining coal-fired power plants operating and encouraging mining.

These actions require federal agencies to identify coal resources on federal land, lift coal barriers, and prioritize coal leases on US land.

The United States is also the signature of a pledge of 31 countries aimed at tripling nuclear power generation by 2050. The United States is currently the world’s largest nuclear generator, houses 94 nuclear reactors in 55 power plants.