Utilities like Tampa Electric, DTE Energy, Xcel Energy, and Dominion Energy have been raising rates by over 10% each due to a confluence of factors:
- Rising oil and gas prices
- Increasing demand
- Costs to maintain and rebuild aging or stressed grid infrastructure
- Costs of extreme weather impacts
Yes, but: Many energy professionals point to an aging utility business model that incentivizes big capital investments customers have to pay off as the motive behind rate hikes.
Customer POV: 5.2 million households that live above the poverty line experience “energy poverty,” or the inability to afford utilities to properly heat or cool their home, according to a 2022 study. Electricity costs have risen by 28.5% since 2019 and the average American is now paying almost $300 a month in utility bills.
“Sometimes I have to choose whether I’m going to pay the light bill or do I pay all the rent or buy food or not let my son do a sport,” one customer told CBS.
