Summer Residential Cooling Outlook: Residential Electric Utility Expenditures Projected to Reach Record Levels, Highest in 10 years
Home energy is becoming increasingly unaffordable for low-income families. The financial burden to families of keeping cool this summer will increase by 7.9% across the nation to an average of $719 from June through September, up from $661 during the same period last year, according to projections from the National Energy Assistance Directors Association (NEADA) and the Center for Energy Poverty, and Climate (CEPC).
Due to the unprecedented rise in summer temperatures and higher rates of extreme heat events over the last ten years, the cost of summer cooling has risen from $476 in 2014 to a predicted $719 in 2024. (This increase has been calculated by NEADA, based on NOAA temperature data and EIA electric usage and price data.)
Federal Funding for the Low Income Home Energy Assistance Program Reduced by $2 billion: The dangers of extreme heat leave low-income families at heightened risk, due to lack of access to affordable summer cooling, increasing electric costs and cutbacks in funding for the federal Low Income Home Energy Assistance Program (LIHEAP) from $6.1 billion in FY 23 to $4.1 billion for FY 24. States have reported that due to the reduction in federal funds, they will have no choice this year but to reduce the number of households served by about one million, and reduce average heating and cooling benefits. About 80% of program funds will be used for heating, leaving only 20% available for home cooling despite predictions of another summer of unprecedented high temperatures.
33 States Have no Summer Shut-Off Protections: Only 17 states and the District of Columbia provide some summer shut-off protections, low-income households in the other 33 states have no summer shut-off protections and could face dangerous health conditions caused by prolonged exposure to extreme heat (see appendix 1).
Almost 20% Very Low Income Families have no Air Conditioning: For households who will be shut off from electricity this summer because they cannot afford their bills, even being inside their homes is dangerous. In less extreme situations, a family can ride out a hot day by opening their windows, taking a cool shower, and hoping it cools down at night. But when the heat persists for weeks, or the outside air is dangerous, opening a window will only make things worse.