No doubt you’ve been looking for ways to stay cool this summer, considering how hot it is outside, not to mention how much it costs to keep your home at a comfortable temperature using an air conditioner. Electricity costs have already risen 24% between April 2021 and April 2024, according to Jim Patterson, managing editor of The Kiplinger Letter, and they’re expected to rise even more before the summer ends. A new report from Utility Dive found that the average U.S. electric bill over the June-through-September period is projected to be $719, a nearly 8% increase year-over-year and the highest average in 10 years.
Different regions should expect higher, or lower, changes in average cooling costs as the summer continues. The Mid-Atlantic (12.2%), Pacific (12.2%) and East South Central (10.1%) will see the largest price increases, according to Utility Dive, while the New England (5.3%) and West South Central (1.8%) areas will see the least amount of change.
Another study, performed by Texas Electricity Ratings, narrowed this data down even further, finding the specific states that are paying the largest change in average cooling costs this summer.
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
States paying largest change In average cooling costs
If you live in one of the following states, expect to pay more for cooling costs this summer.
1. Arizona
Average monthly bill: $134.38
Summer monthly bill: $234.53
Change from average cost: $100.15
2. Nevada
Average monthly bill: $127.02
Summer monthly bill: $227.07
Change from average cost: $100.05
3. Texas
Average monthly bill: $149.76
Summer monthly bill: $229.54
Change from average cost: $79.78
4. Oklahoma
Average monthly bill: $115.71
Summer monthly bill: $189.99
Change from average cost: $74.28
5. Georgia
Average monthly bill: $128.60
Summer monthly bill: $201.47
Change from average cost: $72.87
6. Missouri
Average monthly bill: $113.42
Summer monthly bill: $184.98
Change from average cost: $71.56
7. New Jersey
Average monthly bill: $97.53
Summer monthly bill: $167.44
Change from average cost: $69.91
8. Alabama
Average monthly bill: $147.16
Summer monthly bill: $213.85
Change from average cost: $66.69
9. Kansas
Average monthly bill: $105.41
Summer monthly bill: $167.88
Change from average cost: $62.47
10. Louisiana
Average monthly bill: $129.74
Summer monthly bill: $191.00
Change from average cost: $61.26
"Sizzling temperatures are expected to linger around the U.S. until at least August, with some speculating July's average temperature might surpass the scorching record of 76.77°F set in 1936, says Karl Trollinger, CEO ofTexas Electricity Ratings. “This soaring heat means skyrocketing cooling bills.
Heat waves have caused scorching temperatures on both the west and east coasts this summer. In fact. July 2024 was found to be the warmest July on record for the globe in NOAA's 175-year record, and according to the Weather Channel, was the 14th consecutive month that a global heat record was set.
In the face of rising temperatures, where will cooling costs change the least? That would be Alaska, Washington, Hawaii, Montana and Wyoming. According to Texas Electricity Ratings, these states will actually enjoy a decrease in their bills. Residents of Alaska are expected to save $15.48 a month, while residents of Washington are slated to save $13.13 on average.
To learn how to save the most on energy costs this summer, read up on our energy-related articles:
-
Is 2025 a Bad Year To Retire?Should you retire in 2025? It depends on on how much you saved, your withdrawal plan and how the country is doing.
-
Living Solely on Portfolio Income in Retirement: Just a Fantasy?Relying only on portfolio income is achievable for high-net-worth individuals and those with the right mix of investments. Is it for you?
-
5 of the Best Places to Celebrate St. Patrick's DayWe take a look at some of the most popular destinations to celebrate St. Patrick’s Day. Did your favorite make the list?
-
These Four Books Explore How to Leverage Our Outrage PositivelyThe authors offer some powerful tools to help us find solutions to discord rather than remaining silent or blowing up in anger.
-
Financial Pitfalls to Avoid in Your 30s, 40s and 50sAs you pass through each decade of working life and build wealth for retirement, watch out for the financial traps that can hinder your progress.
-
Trump's Tariffs Could Spike Gas Prices: Here’s How to SavePresident Donald Trump's tariffs against Canada could lead to higher prices at the pump. Here are ways to save.
-
Borrowing Against Your Life Insurance: How It Works and What to ConsiderUnlock quick access to cash by borrowing against your life insurance policy — without credit checks or strict repayment terms.
-
Four Action Items for Federal Employees With $2M+ SavedIf you can't stand the chaos, maybe you can walk off into the sunset of retirement. Here are some thoughts on how to figure out if that would work for you.
-
How to Help Accelerate Support for Women's EqualityInternational Women's Day was earlier this month, and the theme this year is Accelerate Action. Here's how we can all pitch in to help drive gender parity.
-
How to Help Shield Your Retirement From InflationPicking the right investments at the right time can help ensure inflation won't flatten your retirement savings. Here are some tips.
