Your Electricity Bill Is About To Jump 50%
In most areas of the country, electricity has been in relatively abundant supply. Among the reasons are only modest demand increases. However, as there are more hot days in America, which drives air conditioning use, there will be a jump in electricity prices. Additionally, due to AI, demand will tighten further, and there will be a battle for who gets electricity and who doesn’t. Even rising supply from renewables isn’t enough to handle these new demands – even if coal is brought back online, America’s weak grid and lack of energy elasticity mean a dwindling supply.
According to The New York Times, “The cost of electricity is rising across the country, forcing Americans to pay more on their monthly bills and squeezing manufacturers and small businesses that rely on cheap power.” A typical resident living in a 2,000-square-foot home could be hit with bills hundreds of dollars a year more than they are today. Charles Hua told the Times, “We’re facing a huge affordability crisis in America.”
New Politics
The battle moves from the checkbook to the realm of politics quickly. Large tech companies are not beyond hiring lobbyists to protect their AI energy needs. Residents and small business leaders won’t stand a surge in prices. Even worse, a world in which there could be rolling blackouts.Â
A generation ago, the primary concern about energy in the US was the price of gasoline for cars. There was a hope that EVs would slacken gas demand. That demand has dropped even without a robust EV market. The primary reason is that crude supplies have unexpectedly risen.
What happens to electricity prices in the next year or so. It will be a political battle if there is no other solution.
More from ClimateCrisis 247
- Is Meta America’s Greenest Company?
- Natural Gas To Revolutionize AI Data Centers
- America’s Electricity Famine
- AI Energy Use Is Dirty
