We didn't use more electricity. Our bills still went up. Here's what's really going on, and what we can do about it right now.
Our electricity prices are set across a big region, not just our town. When natural gas prices shot up, our bills went up too.
Natural gas makes more than 40% of the electricity in the U.S. When gas prices jump, electricity prices follow right away. We saw this hit hard in 2021 and 2022.
The electric grid is also old and needs fixing. Power companies are spending billions to upgrade it. But they pass those costs on to us through our monthly bills. We're paying now for repairs that should have been made years ago.
Bad weather makes it worse. When heat waves or big storms hit, everyone uses power at the same time. Prices spike. Power companies have to build systems that can handle those worst days, even if they only happen a few times a year. We pay for that all year long.
Tariffs on steel and aluminum have made it more expensive to build and fix the grid. Those costs end up on our bills too.
On top of all that, big tech companies are building data centers that use huge amounts of electricity. More demand with the same supply means higher prices for all of us.
Our bills have two parts: supply (the electricity we use) and delivery (getting it to our home). The delivery part is fixed. We pay it no matter how much or how little we use.
So "just use less" only helps with half the bill at most. The delivery part doesn't change. That's not our fault. It's how the billing system works.
Three things that can really help: