Summer is making itself known with rising temperatures and balmy weather. Air conditioning usage and the heat aren’t the only factors driving up your electricity bill. As inflation fell by 0.1% month-over-month in June, what does this mean for broader electricity costs?
Yahoo Finance senior reporter Rachelle Akuffo details the month-over-month easing in electricity prices — offset by a 4.4% annual rise — and which states will see the biggest electric bills this summer.
According to June’s Consumer Price Index (CPI) report, energy prices actually fell by 2.0% in June while rising 1.0% year-over-year.
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This post was written by Luke Carberry Mogan.
Video Transcript
With inflation slowing down.
Can we also expect our electric bills to go down this summer?
According to the data?
The answer to that Not so fast.
Our own Michelle Leo has more on this.
Great to see you, Rochelle.
Good to see you too, Brad.
I wish I had better news for you.
I mean, CP I data out today does show a seasonally adjusted monthly decline of 0.7% for electricity prices in June.
And that’s after being relatively flat in April and May.
So why isn’t that relief showing up in our electric bills?
I mean, I know I had to stick a shock when I got my bill this month.
So keep in mind on an unadjusted basis over the last year, electricity costs are up 4.4%.
Now, if you’re wondering why you’re not seeing the same sort of relief you see at the pump keeping that unlike gasoline prices which are tied to underlying oil prices, which is a commodity, electricity is a service.
So you have to factor in not just not just the bear price.
You have the raw materials needed for power generation.
You have labour costs and you have the providers capital projects that they’re investing in things like renewable energy plants.
It’s also highly regulated by state governments, so there is some pent up pricing that’s still making its way through.
So don’t expect your electric bill to go down so soon.
Even when inflation does continue to cool off in terms of relief, you can call your utility company about some of their budget billing programmes or even some payment assistance.
You can also ask about spreading out the cost throughout the year versus being hit with that sticker shock during some of these peak seasons of heat and cold.
Because it is getting harder to gauge when these peaks are coming, especially as weather patterns are becoming more unpredictable.
Brad So which states are are bearing the brunt of higher electric bills this summer?
I mean, it’s tough as you look at this study that I found from the Texas electricity ratings, and they use data from the EI A.
They found that Arizona residents will be hit the hardest.
Arizona is shelling out an extra 101 $100.15 on top of their average monthly bill, so they’re looking at about $234 a month just in their electricity bills.
Nevada is close behind with an extra $100.05 a month, with Texas, Texas, Oklahoma and Georgia rounding out the top five.
So if you’re looking for some relief, it’s not coming anytime soon.
Unfortunately, But it is 7-Eleven today, here in the US.
So perhaps at least you can get a free Slurpee.
Cool off a little bit while you work out your financial plans there, Brad.
Yes, Slight bit of relief.
Interim relief here.
Indeed.
At least for the day here.
And, uh, yes.
Thanks for reminding us.
It is a 7-Eleven free Slurpee day.
Yah!
Finances are Michelle la Cofa Rochelle.
Thanks so much.
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