Electric Bills Double for U.S. Retirees, Families as Fuel Costs Surge

People are frustrated with their local utilities, but the companies say it’s not really their fault. New York’s Consolidated Edison Inc., for example, doesn’t generate electricity, and by law it doesn’t make a profit from the power it delivers to customers. It’s charging people more this year because it has to pay more for electricity.

The typical ConEd bill in January was about $124 for customers in New York City using 300 kilowatt-hours, according to company data, up 23% from a year earlier. The higher bills have drawn the ire of both New York Governor Kathy Hochul and Attorney General Letitia James, and prompted the company to adjust the timing of its billing cycles in an effort to mitigate pricing volatility.

Power prices in the U.S. are higher thanks to a conflux of global events.

As the world’s economies started to recover from the pandemic last year, electricity demand spiked. Meanwhile, unusual weather patterns meant there was less wind power in Europe.

Drought also limited hydro power in some parts of the continent as well as in California, while Asia saw tighter markets for coal and natural gas. All those factors came together to create a mad scramble for energy supplies and sent prices soaring.

Now, Russia’s invasion of Ukraine is extending the rally. Russia is a huge exporter of natural gas and oil, so any extended disruptions to its supplies will mean energy prices will likely stay high.

Natural gas generates about 35% of U.S. power, and prices for the fuel have doubled in the past year. Demand and prices also soared for coal, which accounts for about 22% of the electricity mix in the country.

On top of higher fuel prices, people are using more energy this year because it’s been colder. In New York City, the average monthly temperature in Central Park in January was 30.3 degrees Fahrenheit (-1 Celsius), compared with 34.8 degrees in 2021.

“We understand the hardship that higher energy bills can cause for our customers,” ConEd CEO Timothy Cawley wrote in letter last month to the state Department of Public Service.

More than 1.3 million New York City households are 60 days behind on utility bills, about 20% of the city, according to Public Utility Law Project.

Annie Cross, a bus driver in Mt. Vernon, New York, is trying to figure out how to shift her spending to make sure she can keep the lights on and still have enough to fill up her car. She typically pays about $100 a month in the winter to ConEd, but this year she’s seen a $40 increase.

“I have to keep a budget in order to make sure I have gas for the car to go to my job. Like serious budgeting,” said Cross, 61. “I’m going to have figure out where I can take the extra money from.”

–With assistance from Brian K Sullivan.

(Image: Shutterstock)