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Utilities Propose $18 Billion in Rate Hikes, Affecting Millions of American Households
Consumers are unlikely to see any relief in gas and electric bills as utilities proposed more than $18 billion in rate hikes across the country over the first half of the year. The consumer advocacy group PowerLines reported that utilities…
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Key points
- Utilities have proposed over $18 billion in rate hikes this year affecting millions of American households.
- Southern states face the largest increases, totaling $4.5 billion, while other regions also report significant hikes.
- Public response has prompted discussions among regulators about potential rate freezes and additional assistance.
NewsWK — Utilities across the United States have proposed over $18 billion in rate hikes during the first half of the year, leading to concerns for consumers about rising electricity and gas bills. According to a report from the consumer advocacy group PowerLines, the second quarter alone saw a record request of $9.2 billion in cumulative rate increases.
These proposed hikes could impact more than 56 million households nationwide. Southern states are facing the largest increases, totaling $4.5 billion, affecting over 26 million customers. Meanwhile, consumers in the Midwest could see an increase of $2.7 billion across 14 million customers, and Western regions are looking at $1.5 billion in hikes.
The report highlights that many Americans are already struggling with their utility bills, with one in six households reportedly behind on payments. This has prompted state regulators and lawmakers to consider options such as rate freezes and additional assistance funds.
While regulators often approve increases, they typically do so at lower levels than requested. Historically, outright rejections of rate requests are rare; for instance, PowerLines noted that only two out of 83 requests were denied last year, although many remain under review.
Among the largest requests is Texas-based Oncor, which has asked for $1.2 billion as part of its five-year investment plan to support demand from the oil and gas sector. In Virginia, Dominion Energy is seeking $1.5 billion, including $1.1 billion for unrecovered fuel costs. In Michigan, DTE Energy and Consumers Energy have proposed rate increases of about $500 million each.
Drew Maloney, president and CEO of the Edison Electric Institute, emphasized the need for efficient regulatory processes, suggesting that as much as a quarter of consumer bills are influenced by regulatory delays. He acknowledged that rising energy costs are a significant concern for American families.
Based on reporting by Kevin Hardy originally published by Stateline. Read the original story.
