Electricity Costs Are Running Wild
Electricity costs are running higher than inflation and also any other major source of energy in the US. According to the EIA, electricity costs for consumers are expected to rise by 18% nationwide between 2022 and 2026. Based on other estimates, that may be too low.
By contrast, residential natural gas prices are up 1%. The prices of regular gas are down 22%, and home heating oil is down 23%.
Utility Drive says to expect electricity costs to rise more quickly, at a rate of 1% a year between 2024 and 2032.
Most of the actual increases are regional. CBS says residents of parts of New Jersey should expect a new electricity price increase of 20%. CNBC reports that the one-year figure in the Pacific Northwest could be as high as 26%.
The primary reason for the increase is the growth of data centers. Eric Schmidt, the former CEO of Google, says that 99% of the electricity generated ten years from now will go to data centers. However, some data centers will install their electricity generation due to the weaknesses of the US grid.
The other reason electricity prices will go up is AC use. And AC use will increase due to global warming.
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