Kim
As energy bills continue to climb in 2025, Americans are facing the highest costs in 12 years. The National Energy Assistance Directors Association (NEADA) recently reported that the average cost of electricity from June to September is projected to reach $784 in 2025.
This marks a 6.2% increase from the previous year’s average of $737. The rising energy costs are not only a financial burden but also place millions of households at risk of electricity shut-offs, particularly in low-income communities.
In this article, we will explore the reasons behind the surge in energy costs, the states most affected, and the impact on vulnerable households.
We’ll also dive into the policies in place to help those struggling to pay their energy bills and the risks of shut-offs as temperatures rise.
Why Are Energy Bills Soaring?
The $784 average for 2025 represents the highest energy cost for the summer months in over a decade. Several factors contribute to this increase:
- Electricity Prices Rising Faster Than Inflation: The price of electricity is increasing at a pace that outstrips the general inflation rate. This trend, driven by factors like fuel costs and utility company pricing strategies, has led to a steady upward trajectory in energy bills.
- Rising Temperatures: Due to climate change, many regions are experiencing hotter summers, requiring more energy to keep homes cool. As air conditioning use increases, so do electricity demands—leading to higher costs.
- Climate Change Impact: With the global temperature continuing to rise, the need for air conditioning and cooling systems during summer months is pushing demand for energy to new highs.
State-by-State Breakdown of Energy Costs
The increase in energy bills is not uniform across the country. Some states are feeling the impact more than others, with certain regions seeing an average summer electricity bill close to $1,000.
| State/Region | Average Summer Energy Bill (2025) |
|---|---|
| Texas, Oklahoma, Arkansas, Louisiana | $996 |
| New England (Maine, New Hampshire, Vermont, Massachusetts, Rhode Island, Connecticut) | $922 |
| Nationwide Average | $784 |
These regions are particularly affected by extreme heat and high energy consumption, especially in states like Texas and Louisiana, where cooling needs are most critical.
Rising Energy Costs Affecting Low-Income Households
Low and moderate-income households are bearing the brunt of these soaring energy bills. For many, electricity costs account for a disproportionate percentage of their income, making it difficult to keep up with payments.
- Electricity as a Percentage of Income: For low-income families, electricity bills represent about 8.6% of their total income, nearly three times higher than for families in other income brackets.
- Increased Utility Debt: As a result of these rising costs, many families are falling behind on their utility payments. From April 2023 to April 2024, the percentage of households unable to afford their electricity bills for at least one month increased from 34.6% to 36.8%.
- Rising Utility Debt: By March 2025, Americans owed approximately $24 billion in utility consumer debt, a significant rise from $17.5 billion in January 2023. Around 21.2 million households, or about one in six U.S. households, are currently behind on their energy bills.
Shut-Off Risks and Health Impacts
The sharp rise in utility debt has left many Americans at risk of having their electricity shut off, particularly during the hot summer months.
With high temperatures posing a risk to health, energy shut-offs are especially dangerous for low-income families, leaving them vulnerable to heat-related illnesses.
- Electricity Shut-Offs: Only 17 states and Washington D.C. have laws protecting households from shut-offs during the summer months, allowing vulnerable populations to remain safe and cool.
- At-Risk States: 33 states lack specific protections against summer shut-offs, leaving millions of Americans at risk. This is particularly dangerous for families with young children, the elderly, and those with pre-existing health conditions.
- Health Risks: Prolonged exposure to high temperatures without air conditioning can lead to heat exhaustion, heat stroke, and even fatalities from heart attacks and respiratory failure.
What Can Be Done to Help?
Government Assistance Programs
Several programs and initiatives can provide relief to those struggling with high energy costs:
- Low-Income Energy Assistance Program (LIHEAP): This program helps low-income households pay their energy bills during peak seasons, offering financial assistance to prevent shut-offs.
- State-Specific Programs: Many states offer additional energy assistance programs, designed to support families during periods of high energy demand.
- Utility Payment Plans: Some utility companies offer payment deferral programs or budget billing to help spread out the cost of energy bills over the year, making payments more manageable.
As energy bills hit record highs in 2025, millions of Americans are facing rising costs, particularly in states with high summer temperatures. With rising utility debt and the growing risk of shut-offs, vulnerable households need to take action now to prevent further financial strain.
By exploring government assistance programs and payment plans, families can avoid the worst of these rising costs and ensure their homes stay cool and safe during the summer months.
FAQs
Why are energy bills rising in 2025?
Energy bills are rising due to increased demand driven by higher temperatures from climate change and the increasing cost of electricity, which is rising faster than inflation.
Which states are most affected by high energy costs?
States like Texas, Oklahoma, Louisiana, and the New England region are seeing some of the highest energy bills, with average summer bills reaching nearly $1,000.
How can I avoid an electricity shut-off?
Check if your state offers protections against summer shut-offs and apply for government assistance programs like LIHEAP or payment plans offered by your utility provider.