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U.S. Households Face Record-High Summer Cooling Costs, Report Finds
A new report from the National Energy Assistance Directors Association (NEADA) and the Center for Energy Poverty and Climate warns that U.S. households will pay more to cool their homes this summer than at any time in recent history.
The study projects that average residential electricity expenditures will rise 10.5 percent, from $717 in 2025 to $792 in 2026. The increase follows a trend of summer cooling costs that have climbed almost 40 percent since 2020, driven by higher electricity prices and hotter temperatures that force people to run air conditioning longer and more frequently.
The report highlights the impact on low‑ and moderate‑income households. It notes that one in six American households are behind on their utility bills. In 2024, utility companies disconnected electric service 13.5 million times, and almost 40 percent of homes earning less than $50,000 reported difficulty paying energy bills. The study also projects that total utility debt will reach $25 billion by the end of 2026.
NEADA, a national association of energy assistance directors, and the Center for Energy Poverty and Climate are the authors of the report. The analysis was released in Washington, D.C., and is based on data from the U.S. Energy Information Administration and other public sources.
The report’s findings are consistent with broader trends in the electricity sector. The U.S. electricity market has seen rising wholesale prices, partly due to increased demand during heat waves and a shift toward natural gas and renewable generation. The average residential electricity rate in the United States was 18.83 cents per kilowatt‑hour in 2026, according to the latest data from the Energy Information Administration.
The projected rise in cooling costs has significant implications for households that rely on air conditioning as a primary means of staying comfortable during the summer months. The report notes that higher costs are creating affordability obstacles for low‑income families, who are already struggling to meet other basic needs.
While the report does not recommend specific policy actions, it underscores the need for utilities, regulators, and policymakers to address the growing burden on consumers. The NEADA and Center for Energy Poverty and Climate suggest that targeted assistance programs, rate relief for vulnerable households, and investment in energy efficiency could help mitigate the impact.
The report also points to the broader economic impact of rising utility debt. As total utility debt is projected to reach $25 billion by 2026, utilities may face increased pressure to raise rates or cut services, which could further strain consumers.
In the context of climate change, the report highlights that soaring summer temperatures are a key driver of increased cooling demand. The United States has experienced a steady rise in average temperatures over the past decade, and heat waves are becoming more frequent and intense.
The findings come at a time when several states are reviewing their energy policies. Some regulators are considering measures to protect low‑income consumers from high electricity costs, while others are exploring ways to accelerate the transition to renewable energy.
The NEADA and Center for Energy Poverty and Climate report does not provide a timeline for policy changes. However, it calls for urgent attention to the issue, noting that the combination of higher prices, hotter weather, and limited affordability options could lead to more widespread disconnections and financial hardship.
The report’s data underscore the urgency of addressing the affordability gap in the electricity sector. As the summer season approaches, households across the country will face higher cooling bills, and the burden will be felt most acutely by those who are already struggling to keep their lights on.
The report’s authors emphasize that the rising costs are not inevitable and that coordinated action by utilities, regulators, and policymakers could help protect consumers from the worst effects of the trend.
The NEADA and Center for Energy Poverty and Climate will continue to monitor electricity prices and consumer impacts, and they expect to release updated projections as new data become available.
The current situation highlights a growing challenge for U.S. households: the combination of hotter summers, rising electricity prices, and limited affordability options is driving a surge in cooling costs that could strain many families and increase utility debt.
The report’s findings suggest that without targeted policy interventions, the trend could continue, leading to more disconnections and financial hardship for low‑income households.
The NEADA and Center for Energy Poverty and Climate will likely continue to advocate for measures that address the affordability gap, but no specific policy proposals have been announced at this time.
The study projects that average residential electricity expenditures will rise 10.5 percent, from $717 in 2025 to $792 in 2026. The increase follows a trend of summer cooling costs that have climbed almost 40 percent since 2020, driven by higher electricity prices and hotter temperatures that force people to run air conditioning longer and more frequently.
The report highlights the impact on low‑ and moderate‑income households. It notes that one in six American households are behind on their utility bills. In 2024, utility companies disconnected electric service 13.5 million times, and almost 40 percent of homes earning less than $50,000 reported difficulty paying energy bills. The study also projects that total utility debt will reach $25 billion by the end of 2026.
NEADA, a national association of energy assistance directors, and the Center for Energy Poverty and Climate are the authors of the report. The analysis was released in Washington, D.C., and is based on data from the U.S. Energy Information Administration and other public sources.
The report’s findings are consistent with broader trends in the electricity sector. The U.S. electricity market has seen rising wholesale prices, partly due to increased demand during heat waves and a shift toward natural gas and renewable generation. The average residential electricity rate in the United States was 18.83 cents per kilowatt‑hour in 2026, according to the latest data from the Energy Information Administration.
The projected rise in cooling costs has significant implications for households that rely on air conditioning as a primary means of staying comfortable during the summer months. The report notes that higher costs are creating affordability obstacles for low‑income families, who are already struggling to meet other basic needs.
While the report does not recommend specific policy actions, it underscores the need for utilities, regulators, and policymakers to address the growing burden on consumers. The NEADA and Center for Energy Poverty and Climate suggest that targeted assistance programs, rate relief for vulnerable households, and investment in energy efficiency could help mitigate the impact.
The report also points to the broader economic impact of rising utility debt. As total utility debt is projected to reach $25 billion by 2026, utilities may face increased pressure to raise rates or cut services, which could further strain consumers.
In the context of climate change, the report highlights that soaring summer temperatures are a key driver of increased cooling demand. The United States has experienced a steady rise in average temperatures over the past decade, and heat waves are becoming more frequent and intense.
The findings come at a time when several states are reviewing their energy policies. Some regulators are considering measures to protect low‑income consumers from high electricity costs, while others are exploring ways to accelerate the transition to renewable energy.
The NEADA and Center for Energy Poverty and Climate report does not provide a timeline for policy changes. However, it calls for urgent attention to the issue, noting that the combination of higher prices, hotter weather, and limited affordability options could lead to more widespread disconnections and financial hardship.
The report’s data underscore the urgency of addressing the affordability gap in the electricity sector. As the summer season approaches, households across the country will face higher cooling bills, and the burden will be felt most acutely by those who are already struggling to keep their lights on.
The report’s authors emphasize that the rising costs are not inevitable and that coordinated action by utilities, regulators, and policymakers could help protect consumers from the worst effects of the trend.
The NEADA and Center for Energy Poverty and Climate will continue to monitor electricity prices and consumer impacts, and they expect to release updated projections as new data become available.
The current situation highlights a growing challenge for U.S. households: the combination of hotter summers, rising electricity prices, and limited affordability options is driving a surge in cooling costs that could strain many families and increase utility debt.
The report’s findings suggest that without targeted policy interventions, the trend could continue, leading to more disconnections and financial hardship for low‑income households.
The NEADA and Center for Energy Poverty and Climate will likely continue to advocate for measures that address the affordability gap, but no specific policy proposals have been announced at this time.
