Here’s Why Electric Bills Will Be Soaring This Summer
As summer temperatures climb, so will electricity bills for millions of Americans. For families already dealing with higher costs for housing, groceries, insurance, and other essentials, another increase is becoming…
As summer temperatures climb, so will electricity bills for millions of Americans. For families already dealing with higher costs for housing, groceries, insurance, and other essentials, another increase is becoming harder to absorb.
The reason isn’t simply that people use more air conditioning during hot weather. The larger issue is that electricity demand is growing faster than the country’s ability to produce it.
Across the United States, power consumption is rising rapidly. Data centers, advanced manufacturing facilities, population growth, electric vehicles, and the increasing use of electric heating systems are all adding pressure to the grid. Americans are relying on electricity for more aspects of daily life than ever before, yet new power generation is not being added quickly enough to meet that demand.
The result is straightforward: when demand grows faster than supply, prices rise.
At Exelon’s utility companies, roughly 75% of recent customer bill increases have been tied to the cost of generating electricity rather than delivering it. Those generation costs are established in wholesale power markets and passed directly through to customers. Utilities do not profit when those prices increase, but consumers still end up paying more each month.
This imbalance between supply and demand is becoming increasingly visible. In many parts of the country, older power plants are being retired while replacement generation projects face lengthy development timelines. Meanwhile, electricity use continues to expand. The North American Electric Reliability Corporation has warned that more than half of the United States faces elevated risks of electricity shortfalls during periods of peak summer demand. Beyond concerns about reliability, those conditions also contribute to higher energy costs.
Families and small businesses are already feeling the impact. According to the National Energy Assistance Directors Association, average monthly electric bills increased by nearly 30% between 2021 and 2025. While public debates often focus on the symptoms of rising costs, the underlying challenge remains the same: America needs more energy production.
Addressing the problem will require an all-of-the-above approach. No single energy source can meet the country’s growing needs on its own. Expanding energy storage, nuclear power, natural gas generation, renewable energy projects, energy-efficiency programs, and the transmission infrastructure needed to connect them all will be essential. Increasing supply from multiple sources can help improve reliability while reducing long-term price pressure.
At the same time, policymakers need to address obstacles that slow the development of new energy projects. Lengthy permitting processes, supply chain constraints, and outdated regulatory frameworks can delay critical investments for years. With demand rising at its current pace, those delays carry significant economic consequences.
Practical solutions should take precedence over ideological debates. In some cases, allowing regulated utilities to develop and own generation assets could accelerate the construction of new power resources while reducing costs. A recent analysis by Charles River Associates estimated that such an approach could save Americans billions of dollars annually while lowering the risk of service interruptions.
No utility company can solve the nation’s energy supply challenge alone. Meeting future demand will require cooperation among utilities, regulators, policymakers, energy producers, and private investors.
As the United States approaches its 250th anniversary, there is an opportunity to draw on a long tradition of building the infrastructure that supports economic growth and national prosperity. From railroads to highways to the electric grid itself, previous generations invested in systems that enabled the country to expand and innovate.
Energy remains the foundation of modern life. It powers homes, schools, hospitals, factories, and the technologies driving future growth. If the goal is to improve affordability and maintain economic momentum, increasing energy supply must become a national priority.
The path forward is not complicated. America needs to build more power generation, modernize the infrastructure that delivers it, and move projects from planning to construction more quickly. Expanding supply will not solve every challenge facing consumers, but it is one of the most direct ways to ease pressure on energy bills and strengthen the reliability of the grid.